KPMG has completed its independent valuations of two Cypriot banks, reporting to the Central Bank of Cyprus (CBC), as part of the bank restructuring process in Cyprus.
KPMG acted as independent valuer of the assets and liabilities of Cyprus Popular Bank (formerly Laiki) and Bank of Cyprus under The Resolution of Credit and Other Institutions Law of 2013 (Resolution); the purpose of which is to restore the capital adequacy of Bank of Cyprus.
Heather Gray, lead valuation partner at KPMG, commented:
“This was a highly complex valuation engagement, undertaken in an extremely tight time frame and requiring an international team of valuation specialists from KPMG. The work has formed a vital part of the restructuring process of rehabilitating the banks in Cyprus.”
Assets valued by KPMG included the loan books, financial assets (bonds, equity positions and derivatives), real estate, investments in subsidiaries and associates and intangible assets. KPMG's valuation reports were discussed last week with the CBC, the Ministry of Finance (MoF) and Troika (European Commission, European Central Bank and International Monetary Fund).
Stephen Smith, financial services partner at KPMG who has lead KPMG’s bank restructuring work in Greece and Cyprus, added:
“This week signifies an important step forward on the road to prosperity for the Republic of Cyprus. The project has required the specialist valuation skills of a team of 30 KPMG professionals across Europe, reflecting the complexity of the task. We’re proud to have been part of this important restructuring work.”
On 30 July 2013, the Ministry of Finance and the Central Bank of Cyprus announced that the Bank of Cyprus had been fully recapitalised by the overall conversion of 47.5% of uninsured deposits into shares in the bank. This is the final stage of the bank’s resolution process and there will be no further measures under the Resolution Law.
Erik Rood, corporate finance partner at KPMG in the Netherlands, commented:
"The valuation provides very valuable insights for any further restructuring and business planning activities within the banking sector in Cyprus."
KPMG’s team included financial services and real estate valuation specialists in the UK, the loan valuation team in Amstelveen and our iRadar financial assets team in Frankfurt, working alongside KPMG Cyprus, who provided invaluable local insight and support. KPMG in the UK also worked alongside other KPMG local specialists in Greece, Serbia, Romania, Ukraine, Russia and Malta.
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KPMG Corporate Communications
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Notes to editors:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.