01/06/2011 09:08
The exposure of the Cooperatives to Greek bonds is restricted, Supervision and Development of Cooperative Companies Superintendent, Constantinos Lyras told StockWatch.
Mr. Lyras ensured that none of the Cooperatives has investments in Greek bonds and the only exposure to bonds is that of the Cooperative Central Bank of €152 million.
“The Cooperatives, small or big, are not allowed to buy bonds - either Greek or other – or to make any investments. This is a singularity of the Cooperatives and this is how we restrict the risks”, Mr. Lyras told StockWatch.
The bonds have raised concerns to the foreign agencies, which downgrade Cyprus due to the banks’ exposure.
The exposure currently amounts to €5 billion - €3 billion for Marfin, €1.9 billion for Bank of Cyprus and €0.1 billion for Hellenic Bank.
“The €152 million that the Cooperative Central Bank has invested in Greek bonds is negligent compared to the capital of €3.5 billion that the bank has”, CCB General Manager, Erotokritos Chlorakiotis told StockWatch.
“We are exceptionally careful in our investments”, he added.
Besides “none of the Coops invests. Only the Cooperative Central Bank does and the vast majority of bonds are Cypriots”, he noted.
Commenting on the latest downgrade of the Republic by Fitch due to the exposure of the banks to Greek bonds, Mr. Chlorakiotis said that the island’s banking system is one of the best, although its exposure to the Greek market is big, and it can manage a possible haircut.
“The banks have strengthened their capital and they do not face any risk”, he added.
Mr. Chlorakiotis also urged the government and the parties to take fiscal consolidation measures immediately, which will address to all categories of people.
Despite the difficulties of the times, the Cooperatives are still trying to improve their competitiveness, the two men stressed.
“Our aim is to boost their competitiveness further via the mergers. Until the end of 2011 or early 2012, the 101 Coops will be merged to 70”, Mr. Lyras concluded.
Mr. Lyras ensured that none of the Cooperatives has investments in Greek bonds and the only exposure to bonds is that of the Cooperative Central Bank of €152 million.
“The Cooperatives, small or big, are not allowed to buy bonds - either Greek or other – or to make any investments. This is a singularity of the Cooperatives and this is how we restrict the risks”, Mr. Lyras told StockWatch.
The bonds have raised concerns to the foreign agencies, which downgrade Cyprus due to the banks’ exposure.
The exposure currently amounts to €5 billion - €3 billion for Marfin, €1.9 billion for Bank of Cyprus and €0.1 billion for Hellenic Bank.
“The €152 million that the Cooperative Central Bank has invested in Greek bonds is negligent compared to the capital of €3.5 billion that the bank has”, CCB General Manager, Erotokritos Chlorakiotis told StockWatch.
“We are exceptionally careful in our investments”, he added.
Besides “none of the Coops invests. Only the Cooperative Central Bank does and the vast majority of bonds are Cypriots”, he noted.
Commenting on the latest downgrade of the Republic by Fitch due to the exposure of the banks to Greek bonds, Mr. Chlorakiotis said that the island’s banking system is one of the best, although its exposure to the Greek market is big, and it can manage a possible haircut.
“The banks have strengthened their capital and they do not face any risk”, he added.
Mr. Chlorakiotis also urged the government and the parties to take fiscal consolidation measures immediately, which will address to all categories of people.
Despite the difficulties of the times, the Cooperatives are still trying to improve their competitiveness, the two men stressed.
“Our aim is to boost their competitiveness further via the mergers. Until the end of 2011 or early 2012, the 101 Coops will be merged to 70”, Mr. Lyras concluded.
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