Government’s Euros 2.5 billion Coop deposit a message to depositors, Spokesman tells CNA [VIDEO]

By depositing Euros 2.5 billion in the Cyprus Cooperative Bank, the government wished to convey a message that it supports the bank and its depositors, Government Spokesman Prodromos Prodromou told CNA, on Wednesday.

In statements after having paid Cyprus News Agency a visit and replying to a question on the matter Prodromou said that now the state is the biggest depositor of the bank.

This great deposit conveys a message to the rest of the depositors that they should not worry about their own deposits, Prodromou noted.

According to him the goal achieved is that the main process of reviewing investor interest in the Cooperative Bank will be able to go ahead and that decisions, based on public interest criteria, can be taken so that the Cooperative sector can have its place in the Banking Union.

It is remarkable that the state is in a position to make such a political intervention to support a banking institution not just to support a bank, but mainly the deposits and the depositors.

What is important, the Spokesman continued, is to preserve in general the system’s stability which has been achieved through great effort and at the same time to start planning for the most effective way of dealing with non-performing loans in cooperation with all political parties.

The goal is a double one, he said. Firstly, truly vulnerable borrowers should be protected as regard their primary residence while at the same time those who took advantage of the system should be forced to repay their loans.

The Government officially announced yesterday 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.

Source: Cyprus News Agency