Finance Ministry to deposit Euros 2.5 billion to the Cooperative Cyprus Bank

Cyprus Finance Ministry deploys its plans aiming at protecting deposits in the nationalised Cooperative Central Bank while shielding the ongoing tender for the privatisation of the nationalised cooperative sector.

Reliable sources told CNA, the process includes a deposit of Euros 2.5 billion to the CCB, issuing bonds to the CCB as well as utilising state cash reserves.

In this way, the state will boost the CCB’s assets while supporting deposits.

This plan safeguards both deposits in the CCB as well as the finalisation of the privatisation process, the same sources added.

On March 19 the CCB launched a tender for the expression of interest offering two options; acquiring a controlling stake in the bank’s share capital, currently owned by the state, or acquiring assets and liabilities. Sources said, that the CCB received interest both from local financial entities and global financial and strategic investors. Under the process, the CCB is expecting to receive binding offers by end of May.

However, the process generated uncertainty concerning the future of the CCB triggering deposit outflows, prompting the state to step in.

Source: Cyprus News Agency