FRANKFURT (MNI) – Cyprus’s banking system will undergo independent
stress tests, at the request of the Troika, in order to determine the
capital needs of each bank, the Central Bank of Cyprus said Friday.
The exercise, including an “asset quality review and a bottom-up
stress test,” will be conducted by PIMCO together with Deloitte and
monitored by a committee of Cypriot and European authorities.
The stress test will include Bank of Cyprus, Cyprus Popular Bank,
Hellenic Bank, Co-Operative Central Bank, the Limassol Co-Operative
Savings Bank, Eurobank EFG Cyprus and Alpha Bank Cyprus.
Cyprus is in the middle of negotiations with the Troika – made up
of the European Central Bank, the International Monetary Fund and the
European Commission – on a series of fiscal and banking reforms after
the country sought aid for its ailing banking system from the Eurozone’s
EFSF rescue fund. The talks should be concluded by the end of October,
Cyprus’ central bank President Panicos Demetriades said Tuesday.
The “Steering Committee” that will monitor Cyprus’ stress tests
will include the Troika as well as members of the EFSF/ESM rescue funds
and the European Banking Authority.
The results will be published by the Central Bank of Cyprus once
approved by the Steering Committee. The central bank did not give an
estimated time for completion of the stress tests.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —
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