Government to deposit 2.5 billion euro at CCB in the form of a bond

The Government officially announced on Tuesday it was depositing 2.5 billion euro at the Cyprus Cooperative Bank (CCB), in the form of a bond, to support it amid a tender for the privatisation of the nationalised cooperative sector.

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. The process has generated uncertainty over the future of the CCB triggering deposit outflows, which in turn prompted the state to step in.

In statements to the press at the Presidential Palace, Government Spokesman Prodromos Prodromou spoke of a move that would shield the Bank and secure the stability of the banking system of Cyprus. He also assured that the depositors’ interests were safeguarded.

Today the Government is making a deposit of 2.5 billion euro at the Cyprus Cooperative Bank. In this way the Bank is shielded. The stability of the banking system is fully secured and we can move forward to complete the changes imposed by the European supervisory authorities in a safe and orderly manner said Prodromou in his statements.

He went on noting that in this way the tender procedure will be completed in April.

The Government through this initiative aims to allay any doubts and put an end to uncertainty, in a way that would render groundless any irresponsible rumours Prodromou noted.

At the same time, he stressed that the transition of the Cyprus Cooperative Bank to a new state of affairs is fortified and the interests of the depositors and all the citizens are safeguarded.

In this perspective we are creating simultaneously the conditions for the establishment of new structures to manage non-performing loans which are the cause of the problems depending on the final form of the investment interest he stressed.

Replying to a question he said that the deposit would be in the form of a bond, but noted that more details would be announced by the Finance Ministry during the day.

Source: Cyprus News Agency