Greek Cyprus central bank to conduct banks’ stress test

LIMASSOL - The Associated Press

Citizens pass by a branch of Emporiki Bank in downtown Athens, Greece, 9 August 2012 when later the National Bank of Greece and Eurobank submitted their official offers to acquire Emporiki Bank. EPA photo

Greek Cyprus’ central bank says the country’s top lenders will undergo a stress test after a request from potential creditors to determine the amount of money they need to shore up their capital base.
 
The central bank said in a statement Friday that the stress test will be carried out by PIMCO and Deloitte, and will cover the country’s top three banks - Bank of Cyprus, Laiki and Hellenic, as well as the Co-Operative Central Bank and the Cypriot arms of Eurobank EFG and Alpha Bank.
 
The process will be overseen by Greek Cypriot authorities in conjunction with representatives from the so-called troika - the European Central Bank, the European Commission and the International Monetary Fund.
 
Greek Cyprus applied to the troika in June for aid to prop up its Greece-exposed banks.