articles | 09 August 2013

Cyprus Cooperative Credit Institutions to merge

Cyprus Cooperative Central Bank released on Thursday a list of the new 18 Cooperative Credit Institutions to be established on the island, after the merger of 93 existing institutions.

According to a press release issued by the Cooperative Central Bank, during a meeting earlier today representatives of all Cooperative Credit Institutions, which are members of the Cooperative Central Bank, were informed about the restructuring strategy agreed during the recent deliberations of the Troika with the Republic of Cyprus competent authorities, on the basis of which a Restructuring Plan will be drafted. Particular emphasis was given to the immediate implementation of the Plan’s provisions regarding the merger of the 93 existing institutions and the establishment of 18 new companies.

General Director of the Central Co-operative Bank (CCB) Erotokritos Chlorakiotis expressed certainty that the Cooperative Movement will be able to, either gradually or in a one-off payment, regain its shares that will be given back to its members. The Cyprus government would spend around €1.5 billion of the €10 billion international bailout to buy shares in the co-operative movement so the latter could meet its recapitalisation needs. The co-ops will receive the money after the disbursement of the second tranche of the Cypriot bailout programme, pending approval of the Eurogroup in September. The move will make the state the exclusive owner of the co-operatives, acquiring 99 per cent of its shares.

Source: Financial Mirror

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