The news came after the Cyprus government had decided to repay part of the e1/41.8 billion bailout bond
issued in favour of now-defunct Laiki Bank, which was transferred to BoC after the failed lender was wound down.
Last month, Noor Islamic Bank's chief executive Hussain Al Qemzi reportedly told Zawya Dow Jones that the bank had received a portion of Dubai's USD10bn economic bailout bond
in the form of deposits.
Repayment of the Laiki bailout bond
had already been announced by Governor of the Central Bank of Cyprus (CBC) Chrystalla Georghadji on Wednesday.
Without an extension, Athens would also lose access to almost 11 billion euros in euro zone bailout bonds
now available to safeguard Greek bank capital needs in the Hellenic Financial Stability Fund.
Italian lender, Monte dei Paschi di Siena, approved a proposed EUR3bn capital increase in order to gain Brussels consent for a EUR4.1bn state bailout bonds
Yields on Europe's own 10-year EFSF bailout bonds
have also declined since mid-September.
The euro gained ground after The Financial Times reported Thursday that Asian investors including the Chinese government are expected to be significant buyers of Portuguese bailout bonds
when their auctions are held next month, dealers said.
The Financial Times quoted the head of the European Financial Stability Facility as saying China and other Asian investors were expected to buy a "strong proportion" of Portuguese bailout bonds
when the euro zone's rescue fund starts auctioning them next month.
A Financial Times report also cited by traders as supporting the euro said that China and other Asian investors would buy a "strong proportion" of bailout bonds
for Portugal to be issued next month by the European Financial Stability Facility."We've seen the euro test downwards recently, but I feel there are plenty of euro-buying needs as European investors would want to repatriate funds ahead of more potential stress tests in Europe," said Hideki Amikura, a forex manager at Nomura Trust and Banking in Tokyo.
Wall Street has rebounded recently, raking in bumper profits that have helped banks repay bailout bonds
and freed them to pay out massive staff bonuses once more.
In actuality, that move cost taxpayers an extra $5 billion since it made the bailout bonds
The euro strengthened in Tokyo after the Financial Times reported Thursday that Asian investors including the Chinese government are expected to be significant buyers of Portuguese bailout bonds
when auctions are held next month, dealers said.