CCB and Altamira Asset Management form joint venture to tackle NPL

Cooperative Central Bank and Altamira Asset Management have decided to form a joint venture for the management of non-performing loans and real-estate.

At the same time, after a relevant resolution, the Bank decided to change its name into Cyprus Cooperative Bank and to introduce the total issued share capital of the Bank, totaling Euros 6,036,000,000, of a nominal value of Euros 0.28 each, to the main market of the CSE at a price of Euros 0.10 each in consultation with the competent supervisory authorities and the European Central Bank.

The resolution, approved by an extraordinary General Meeting, deals with the creation of a ten-year old consortium between the CCB ( 49% ) and 43% Altamira (51%) for the management of NPEs and of Euros 7.2bn and real estate of Euros 0.4bn.

In a statement, the General Manager of the Cyprus Co-operative Bank, Nikolas Hadzigiannis said that “the approval of the cooperation with Altamira” is in many ways a very positive development for the Bank “, adding that” this cooperation constitutes a landmark for the Bank as it takes us to the next stage of managing loans in arrears, in line with European banking practices. “

“The Bank has set ambitious but realistic targets for the future of overdue loans with this great partnership so as to get out of the problem in the next five years. We move forward decisively,” he added.

Altamira is the second largest asset management company in Europe with a Euros 65 bn portfolio under management.

In an email to the CCB, Altamira’s General Director, Julian Navarro Pascual expressed satisfaction over the very significant, as he said, business deal that came after long and hard preparation.

He also expressed readiness to face the challenge on the Cyprus soil.

Finance Minister Harris Georgiades in a statement issued after CCB’s announcement, described the decision to form a joint platform with Altamira as a decisive step towards dealing with NPL’s.

Source: Cyprus News Agency