articles | 19 December 2017

Co-op bad loans reduced to €6.5bn

Since August 1 2017, the state-owned Cyprus Cooperative Bank has reduced its non-performing loans by €670m to €6.5bn, an executive was quoted as saying by the Cyprus News Agency (CNA).

Varnavas Karounas, who was talking to reporters on Monday, said that by applying a new strategic plan, the lender, was able to reduce its delinquent loan portfolio by 13% since 2015 when it peaked at €7.6bn, CNA reported.

The new strategicplan helped achieve a 9% reduction since August 2017 alone, he added.

Nicholas Hadjiyiannis, the chief executive officer of the bank, recapitalised with €1.7bn in 2014 and 2015, said he expects that next year — when an agreement with Spain’s non-performing loans specialist Altamira kicks in — will bring considerable changes in the administration of delinquent loans, including loan sales.

In the first nine-months of the year, the bank posted €63.3m in net losses compared to a net profit of €53.9m in the respective period last year.

The bank is currently working on its Cyprus Stock Exchange listing as part of its obligation to reduce the government’s stake from over 99% to below 25% with successive capital issues.

On September 1, it was reported that the Co-op was expected to reduce its non-performing loans stock by over €1bn by the end of the year.

Hadjiyiannis said the bank is resorting to pilot campaigns in cooperation with outside associates in an attempt to recover €1bn of unsecured terminated debt.

He added that bank has introduced ‘Qualco,’ a new software adjusted to Cyprus’ legislation which will help manage the bank’s non-performing loans stock.

Source: Cyprus Mail

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