Economic Adjustment Programme for Cyprus

Bank of Cyprus, which was forced to recapitalize by seizing customer savings in 2013, said on Thursday that it has fully repaid emergency liquidity assistance (ELA) to the island's central bank.

The lender said it had repaid 11.4 billion euros in total.

Most of it was a legacy of Laiki, a lender that was shut down during the financial crisis that gripped Cyprus in March 2013.

It is hard to imagine Greece's debt being sustainable without a haircut, an International Monetary Fund official said on Thursday, adding that it remained an open question as to whether the IMF would participate in Athens's third bailout program.

"I would not say that that is all done," the IMF official said.

The Greek government is being prepared to retreat so as to put an end to the ongoing negotiations and accept cuts in salaries and pensions in return for Europeans’ promises of a debt relief debate which could take months, while any decision to be taken will concern the period after 2023.

Greece's finance ministry on Dec. 8 said it had lifted capital controls imposed in June on its stock market, but kept in place a short selling ban on the shares of its top banks.

European Commission Vice President Valdis Dombrovskis left Greece with an ultimatum during his two-day visit to Greece on Thursday and Friday. He made it clear that prior actions need to be completed before the recapitalisation of banks can take place.

Greece is on course towards its third bailout agreement with internationalcreditors on August 11. A source from the European Commission stated that an agreement by Tuesday would lead to the first installment of a bailout tranche by August 20 so that Greece can pay its dues to the European Central Bank worth 3.2 billion euros.

Cyprus?s finance minister said on Tuesday the country has raised 1 billion euros from international markets with its second public bond issue since its painful bailout two years ago.

Harris Georgiades stated the seven-year bonds were nearly twice oversubscribed and carried a 4 percent interest rate.

International lenders began talks in Cyprus on Monday to try to pave the way for a resumption of bailout payments after the island passed a law on foreclosure of bad loans.

Cyprus?s Central Bank said that technical banking teams from the European Union, the International Monetary Fund and the European Central Bank would be on the island until Thursday, and again from May 6.

By Yiannis Papadoyiannis

Greek banks are sailing in uncharted waters as they hope for a swift agreement between the government and its eurozone peers to lift the current uncertainty. Deposits have declined to their lowest levels since the outbreak of the crisis.

Cyprus President Nikos Anastasiades told a media conference in Nicosia on Friday that Nicosia has a backup plan to deal with the fallout of a possible Greek exit from the eurozone.