NICOSIA - A cooperation agreement was signed Monday between the Central Bank of Cyprus and Black Rock, which will take over the auxiliary role of evaluating the findings of Pimco’s due diligence.
The American multinational investment management corporation and leading asset manager Black Rock will be the consultant that will cooperate with the Central Bank to verify the due diligence of Cypriot banks, carried out by US firm Pimco in December, on the amount necessary for the recapitalisation of Cyprus’ banking sector.
According to CNA sources, the two sides reached an agreement after a teleconference that lasted four hours.
The same sources have said that the two sides came to an agreement after Pimco and BlackRock, which are competitors, drafted the necessary legal framework which defines the method of cooperation between the two companies and allows them to safeguard confidentiality for both sides.
Cyprus applied for a bailout on June 25, 2012, after its two largest banks turned to the state for financial assistance having sustained a severe hit due to their heavy exposure to Greek bonds.