Central bank deposits-loans September data reflect agreement for Coop bank

Data released by the Central Bank on Wednesday about deposits and loans in Cyprus, in September, reflect for the first time the provisions of an agreement between Cyprus Cooperative Bank (CCB) and the Hellenic Bank, including the Euros 6 billion non performing loans (NPLs) which remained in SEDIPES, a cooperative asset management company which does not have a license to operate as a credit insitution.

“Total deposits in September 2018 recorded a net decrease of Euros 230.4 million, compared with a net increase of Euros 176.3 million in August 2018,” the Cental Bank says.

Nevertheless, it adds, the outstanding amount of deposits fell by Euros 3.7 billion in September 2018 and reached Euros 47.4 billion.

This is mainly attributed to Euros 3.6 billion deposits of the Cyprus government, previously held with the CCB, which remained with SEDIPES as a result of the agreement between CCB and Hellenic Bank.

The annual growth rate of deposits reached 3.8%, compared with 3.9% in August 2018.

According to the official data total loans in September 2018 recorded a net increase of Euros 250.5 million, compared with a net drop of Euros 187.8 million in August 2018.

Nevertheless, the outstanding amount of loans decreased by Euros 6.3 billion in September 2018 and reached Euros 39.7 billion.

“This is mainly attributed to Euros 6.0 billion non-performing loans of CCB which remained to SEDIPES as a result of the above agreement between CCB and Hellenic Bank,” the Central Bank says.

The annual growth rate was zero, compared with -0.8% in August 2018.

Source: Cyprus News Agency