1+ billion euro in losses for Bank of Cyprus due to Greek debt

Bank of Cyprus announced yesterday that according to the preliminary financial results of 2011, it took a hit of about 1.32 billion euro due to the 60% impairment of Greek Government Bonds that the bank is holding. In contrast to this loss, Bank of Cyprus, the Cyprus biggest lender, did manage to meet the targets it had set for 2011, if not taking the Greek Government Bonds into consideration, putting the total loss slightly down to 1.01 billion.

Bank of Cyprus is already taking measures to boost its capital reserves, one of which is selling its subsidiary Bank of Cyprus of Australia Ltd.

Nevertheless, President of the bank’s Board of Directors stated that in a period of continuing economic crisis in the European markets that Bank of Cyprus Group operates it has achieved to increase its operating profitability and maintain a healthy liquidity.