Local
articles | 13 October 2016

Coop bank set to be privatised

The Cooperative is in a race against time to achieve its goals within certain timeframes, as a step towards privatisation has been made to join the Cyprus Stock Exchange.

The Cooperative Central Bank must, by December 31 2016, take all necessary measures and to receive the required permits to enter the Cyprus Stock Exchange. Also, to be in a position for a potential introduction of its shares which will arise by increasing its share capital on June 30, 2017 in the case that the CCB addresses capital needs.

The Cooperative has received financial support from the state amounting to approximately €1.7 billion and, according to the recapitalization plan, the organization will need to take all necessary measures to receive the relevant permits from the relevant regulatory authorities, so that it is ready to introduce its shares in the CSE by June 2017. By September 2018, the CCB must provide 25% of its share capital, another 25% by June 2019, and another 25% by June 2020.

It is worth noting that while the Cooperative is making its first steps towards privatisation, opposition party AKEL is pushing a bill to make the Coop state-owned until 2019. The proposal is expected to be discussed in the House of Representatives soon.

Meanwhile, the Minister of Finance, Haris Georgiades, has sent a letter to the House Finance Committee, warning it that postponing privatisation would have negative consequences since it would, as he claims, be a violation of the rules regarding state aid.

Source: InCyprus

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