EMED Mining reviews impact of Cypriot bank levies

EMED Mining said on Tuesday the impact of bank levies in Cyprus has been reduced.

The company held €210,000 in a current account of a Cypriot bank for payment of local expenses along with deposits at other banks.

When Cyprus temporarily suspended its banking operations last month, the company advised shareholders of the potential impact of up to €270,000 of one-off levies proposed by authorities.

Banks reopened for the first time in two weeks last Thursday following a €10bn bailout deal with the Troika that included controversial levies on large uninsured deposits in return for bank shares.

While deposits under €100,000 will be safe, the government has imposed strict capital control measures - capping daily cash withdrawals per person per bank at €300 - to ensure the country retains enough cash to meet the bailout requirements.

Based on the subsequently revised restructuring of the banks, the potential impact on EMED Mining has been reduced to €110,000 which has been set aside to cover losses of a local bank.

"We believe that the company's other deposits are not exposed to the restructuring of Cyprus banks," the group said.

"The global financial crisis of 2008 and the subsequent international banking crises, including the current Cyprus situation, have not affected the smooth functioning of the company's administration in any of its jurisdictions, including Cyprus where we employ a small team of highly professional staff for accounting, treasury and compliance."

Shares fell 1.20% to 10.25p at 09:29 Tuesday.

RD