Bank of Cyprus (BOC) announced the release of €950 million in blocked deposits, an indication the recapitalisation effort is on track.  In a statement, the bank’s CEO cited the stabilising signs of its deposit base and improving liquidity position.

BOC deposits were blocked following the bank’s recapitalisation process as of 30 July 2013 and were placed into three equally distributed time deposits with maturity dates of 31 January 2014, 30 April 2014 and 31 July 2014.  The released €950 million represent funds from the first time deposit maturing on 31 January 2014.

Affected depositors have a variety of options available regarding the released funds and must contact the bank within 15 days from the expiration date of the first time deposit. Click here to view the relevant BOC sample letter sent to interested parties.

The released deposits are still subject to the temporary restrictive measures currently applicable to all banks in Cyprus.  Click to access the latest Decree for Temporary Restrictive Measures on Transactions in Greek or English.  Last week president Anastasiades announced that the restrictions would start being lifted gradually.

In a separate development the Cyprus Securities and Exchange Commission (CySEC) announced on 28 January 2014 its decision to request the suspension of trading of Bank of Cyprus shares for a further 6 months, until 31st July 2014.  According to the announcement, CySEC considers six months as a reasonable timeframe for BOC to take all necessary measures prior to recommencing trading.