Hellenic bank in troubled Cyprus recapitalises

Hellenic Bank, the second-largest lender in recession-hit Cyprus, said Friday it has overshot its 294 million euro ($396 million) recapitalisation needs with three new major stakeholders snapping up shares. The Cypriot Orthodox Church had been the major shareholder in the bank, but now Belarus-owned firm Wargaming and US investment fund Third Point Offshore each secured 30-percent shares, and Cypriot investment company Demetra 15 percent. While Hellenic had been required to raise the 294 million euros in regulatory capital under the terms of a 10-billion-euro bailout agreement the island signed in March with international lenders to save its crisis-hit banking sector. But the final figure was 358 million euros. In return for the bailout secured in March, international creditors demanded the winding up of what was previously the island's second-largest banker Laiki and a "haircut" on deposits over 100,000 euros in its largest lender, Bank of Cyprus. Hellenic was not part of the bail-in scheme. International lenders are currently on the island conducting a second review of the economy and banking system in order for Cyprus to receive its next tranche of bailout cash.