SUNDAY, 24 MAR 2019



Facebook Linked In Twitter

Perdios: Sports Tourism Should be an Integral part of Cyprus’ Tourist Product

Cyprus and Portugal to Enhance Cooperation in Maritime Transport



brought to you by Deloitte

Anastasiades Expresses ‘Full Confidence’ in Finance Minister

Anastasiades Expresses ‘Full Confidence’ in Finance Minister

Cyprus President, Nicos Anastasiades, has expressed his “full confidence” in Finance Minister Harris Georgiades after a Committee of Inquiry on the demise of the Cyprus Cooperative Bank found that Georgiades had the biggest responsibility.

The CCB, Cyprus second largest lender which was bailout by the state in 2013 and in 2015 with €1.7 billion, was split between a bad bank and a good bank, with the latter sold to Hellenic Bank, which paid the state with €74 million and received a balance sheet of €10.3 billion.

“It is not my intention for the time being to comment in detail on everything written in the report,” President Anastasiades said in a written statement yesterday evening, adding that he expects that the Attorney General “will review its content and will take the necessary steps according to his judgment.”

On the political blame which the report attributes, he refers to six points, the Cyprus News Agency reports.

He notes that “in 2013 the Cooperative sector was in a state of bankruptcy and full collapse.” “The sector had non-performing loans of the order of €7 billion, which had been created before 2013, through dubious and often scandalous procedures as the Inquiry Committee finds,” he adds.

President Anastasiades also says, one of the terms of the Memorandum of Understanding signed between Cyprus and its international lenders (EC, ECB, IMF) in 2013 was that the Cooperative institution would be restructured and turned into a bank and would at the same time start to be supervised by the European Central Bank.

Thirdly, he continues, despite all efforts to reduce non-performing loans, more strict rules were adopted by the Single Supervisory Mechanism which had to do with events in relation to events before 2013 and the problematic nature of the non-performing loans, which in turn led to taking further measures.

As an inevitable outcome and following the intervention of the SSM, the decision made by the government last June to split the Coop’s assets and sell part of it to the Hellenic Bank was necessary, he notes.

President Anastasiades further notes that this decision was adopted but also welcomed by the SSM, the ECB and all European institutions in general, while it was also seen as a positive development by international ratings agencies and the international financial community.

In particular, he points out that international ratings agencies, have used the sale of the cooperative sector as a reason for upgrading the Cypriot economy, which finally made it to the investment grade.

According to Cyprus’ President it is evident that the Finance Minister was called upon to make responsible decisions in order to avoid a disorderly bankruptcy of the Cooperative secto,r something the Committee itself notes in page 171 of its report where it says that “the Republic of Cyprus was obligated in 2013 to make the disbursement of €1.5 billion to recapitlise the Cooperative Credit Sector in order to prevent its collapse, due to lack of capital which led to a great percentage of non-performing loans.”

Loans, he adds, the obligations of which could not be met due to the scandalous procedure through which they had been granted, as the Committee finds in page 173, which also played a crucial role in the SSM’s intervention of January 8, 2018.

President Anastasiades further underlines tha,t by adopting the Finance Minister’s proposals, the government managed to protect deposits, guarantee the staff’s jobs and working rights, protect the Cooperative sectors assets which are expected to contribute in regaining a significant part of the state assets which had been given and to internationally enhance the Cypriot economy’s credibility.

“I would consider a request for the assumption of political responsibility on the part of the Finance Minister absolutely well founded if I overlooked his role in: preventing the disorderly default of the state, in a quick and successful exit from the MoU (economic adjustment programme), the creation of budgetary surpluses, the great reduction of unemployment, achieving continued growth with one of the highest rates in Europe,” he points out.

Even then, he continues, “I would still consider that the Finance Minister bears political responsibility if the Cooperative sector’s collapse was the result of non-performing loans which were made after 2013 and not as a result of NPLs which had been amassed until 2013.”

“In light of the above, I wish to reconfirm the government’s political direction in the economy sector and to reiterate that the Finance Minister enjoys my full confidence,” he concludes.


Anastasiades to Participate in European Council Summit

President of the Republic Nicos Anastasiades departs for Brussels on March 21, to ...

Commissioner Avramopoulos Visits Cyprus

Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos will be in ...

Anastasiades Promises to Maintain Fiscal Discipline and Promote Structural Reforms

Cyprus President Nicos Anastasiades has promised that the government will comply with EU ...



Monaco International Luxury Property Expo 2019

The Monaco International Luxury Property Expo 2019, the world’s central B2C exhibition for upscale international real estate, will be held 15-16 May 2019 ...

PwC’s 4th Twitter Tax Cast to Provide Information on Cyprus’ Tax System

Business executives and the general public will have the opportunity to receive important information and also submit questions live on Twitter to PwC experts, ...

Fitch Upgrades Hellenic Bank to 'B+' and Affirms Bank of Cyprus at 'B-'

Fitch Ratings has upgraded Hellenic Bank Public Company Limited`s (HB) Long-Term Issuer Default Rating (IDR) to `B+` from `B` and Viability Rating (VR) to `b+` ...

Cyprus and Portugal to Enhance Cooperation in Maritime Transport

Cyprus and Portugal have underlined their wish to further enhance their cooperation in the sector of maritime transport during an official visit by Deputy ...

Perdios: Sports Tourism Should be an Integral part of Cyprus’ Tourist Product

Deputy Ministry for Tourism will work to render sports tourism an integral part of Cyprus’ tourist product, Deputy Minister Savvas Perdios has said on ...

British High Commission Continues to Support Innovation in Cyprus

Over recent months the British High Commission has supported a series of Innovation Workshops delivered by the Northern Ireland Cooperation Overseas (NICO) in ...

Infocredit Supports Boot-Camp Entrepreneurship-PEAK Up Your Success at EUC

Infocredit Group, committed in supporting innovation and youth entrepreneurship, was among the sponsors of the Boot-Camp Entrepreneurship-PEAK Up Your Success ...

Promoting Cyprus at the MIPIM International Property Exhibition in Cannes

Invest Cyprus (the Cyprus Investment Promotion Agency), accompanied by leading Cypriot companies active in the professional services and real estate ...