NICOSIA - BlackRock, the American multinational investment management corporation and leading asset manager, is the consultancy selected by Cyprus Central Bank to analyse Pimco methodology as regards the amount deemed necessary for the re-capitalisation of Cyprus’ banking sector.
A reliable source told CNA that the announcement of the preliminary agreement reached between CBC and BlackRock is being delayed due to the complicated process of drafting the necessary legal framework, which will set the models of cooperation between the two companies.
The Central Bank was expected to announce the name of the consultancy selected to verify the due diligence of Cypriot banks carried out by Pimco in December. Pimco interim report was submitted December 7.
The full report is expected to be delivered by mid January. According to CNA sources, the Steering Committee began studying the interim report as of December 7 and it has already sought clarifications from Pimco.
The focal point is the methodology used by Pimco to make preliminary calculation of the capital requirements of credit institutions. BlackRock will offer assistance on technical data within the Pimco report.
The bank’s recapitalization needs are of crucial importance for Cyprus, as they will determine the size of bailout required.