Three out of four Cyprus Banks have emerged unscathed from the pan-European stress tests on 26 October 2014. The fourth bank failed the test due to a manageable shortfall.
Bank of Cyprus, RCB and Cyprus Cooperative Central Bank all recorded surpluses while the Hellenic Bank recorded a €105 million shortfall. Chairwoman of the Hellenic Bank stated that the bank is planning a rights issue, which will raise considerably more funds than the shortfall amount.
The Cyprus Central Bank hailed the outcome as positive, noting that they will help strengthen general confidence in the country’s credit institutions. The CBC added that these results will also contribute to the lifting of remaining capital controls, imposed on external transactions.
Cyprus’ public debt will be lower than projected by its Troika of international lenders, following the conclusion of the stress tests, as no capital shortfall emerged for the state-owned Cooperative sector.