“We acknowledge that the role of the cooperative sector is not simply to tackle today’s financial and banking crisis, but to assist the prospects of the country. We do no simply aim to be a typical financial institution, we assume our responsibilities and we are fully aware of our purpose which is to work in the cooperative way,” cooperative central bank chief, Nicolas Hadjiyiannis, told journalists on Wednesday.

“New loans should contribute to restoring the economy and to a more solid growth,” he added.

Furthermore, Hadjiyiannis announced that the Co-ops will move closer to the European cooperative banking sector through a more active participation in the European Association of Cooperative Banks.

“The new supervisory framework, the current challenges in the economy and the direction we wish to follow demand the adoption of best cooperative practices from Europe,” he said.

Responding to a question, the CCB chief said that the cooperative sector is examining the possibility of joining the sector of syndicated loans, a practice observed by European cooperative banks, that is a syndicate of lenders which provides loans to a borrower, be they a corporation or a large project.

Yiannis Stavrinides, head of the CCB Strategy and Communications Service, said the bank hired the services of Boston Consulting Group to assist the Cypriot Cooperative sector to implement best practices, strengthen good governance and enhance its provided banking products.

He also said it is too premature to explore the possibility the Cooperative sector to start buying back its share capital from the state.

Source: InCyprus