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Press: Looking for €800m

26/09/2014 08:09
The major issues in today’s financial press are the transfer of €800 million from the share capital increase of Bank of Cyprus to the Central Bank for the payment of ELA, the negotiations that are in progress for the exchange of debt of Aristo Developers with shares to be given to Bank of Cyprus and the suspension of the activities and dismissal of staff at Kykkos Holy Monastery.

The “Economy” inset of newspaper “Phileleftheros” refers to the transfer of €800 million from the share capital increase of Bank of Cyprus to the Central Bank for the payment of ELA. According to Board members of BOCY, the transfer of such a large sum by the bank was not known to the Board of Directors and the conduct of an investigation was requested to find out the procedures under which the sum was transferred to the CB.

Elsewhere the newspaper reports that according to Central Bank data, total deposits in August recorded a net decline of €328.1 million compared to a net decline of 153.3 million in July 2014.

Other headlines:

-Improvement of economic climate due to services and trade

-RCB and HB to increase capital

-Guide to borrowers from the association

-Debt shot to €20.1bn – Only for the interests, the state will pay €684.9m

The “Economy” inset of newspaper “Politis” refers to the negotiations that are in progress for the exchange of debt of Aristo Developers with shares to be given to Bank of Cyprus within the framework of the restructuring of loans of the Cyprus development company. According to the major shareholder of Aristo, Dolphin Capital Investors, the company is in talks for the restructuring of its loans.

“Politis” also reports that Capital Intelligence raised the Bank of Cyprus` (BoC) Financial Strength Rating (FSR) to `B-` (from `C+`), reflecting the greatly improved capital position of the bank.

Other headlines:

-Share capital increase by RCB

-Draghi sees low growth

-Outflow on deposits continue – They decreases in August by €328m

-Households in despair – Pessimistic estimates for the condition of the economy

The ‘Economy” inset of newspaper “Simerini” refers to the completion of the procedures for the staffing of a group that will undertake the privatization of Cyta with yesterday’s notice from the privatizations unit of the Finance Ministry of the competition for the position of technical director. As noted, the technical director together with the advisors for legal, accounting and economic issues will advise both the privatizations superintendent and the competent bi-ministerial committee, so that based on the memorandum, Cyta is privatized by the end of 2015.

The newspaper also refers to the letter sent by the Vice Chairman of Bank of Cyprus, Vladimir Strzhalkovskiy to the CB Governor, asking for the resignation of the Board members.

Other headlines:

-Sale of loans from banks on hold

The “Economy” inset of newspaper ‘Haravgi” refers to the loans of the European Investment Bank to the Cypriot banks. According to the report, EIB supports that since early 2014 it had granted to its banks-partners in Cyprus new credit lines of €110 million. The beneficiaries, according to EIB, are domestic SMEs and mid-cap.

‘Haravgi’ also reports that the Chairman of the commercial banks’ association, Giorgos Georgiou admitted yesterday that the banks are partly responsible for the low restructuring rate.

Other headlines:

-PEO calls for resistance to privatizations

-ELA reduced by €800m

-Foreign deposits of €225m left

-Austerity surplus in the budget

The newspaper “Alithia” refers to the suspension of activities and the dismissal of staff at Kykkos Holy Monastery. According to the report, since the revenues do not cover the Monastery’s costs, the latter decided to suspend certain significant services and to proceed with dismissals. The debts of the Monastery have reached €50 million.

The “Economy” inset of the newspaper refers to the signing of new loans of €85 million for SMEs from the European Bank. In its announcement, EIB said that since early 2014 it has granted to Cypriot banks new credit lines of €110 million for the financing of the SMEs.

Other headlines:

-Exit from the MoU with new budget

-Guide to borrowers

-Improvement of economic climate

-Deposits reduced