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EBRD in HB targeting NPLs

30/09/2015 10:30
The European Bank for Reconstruction and Development (EBRD) signed an agreement today for its participation in the share capital of the Hellenic Bank with an investment of €20 mn in new shares.

EBRD will hold 5.4% of the share capital and the bank's voting rights.

"With our participation in the share capital of the Hellenic Bank, EBRD takes another important step towards the stabilization of the Cypriot banking sector. We will focus on the restructuring of non-performing loans, balance sheet consolidation and the improvement of efficiency. The successful management of non-performing loans will enable the bank to return to profitability and to further develop its business model for the benefit of individuals and companies, "said the director of financial institutions and European banks of EBRD Lucyna Stanczak - Wuczynska.

Chief Executive Officer of the Hellenic Bank Bert Pijls said that he looks forward to expanding their cooperation in other sectors with mutual benefit.

"The EBRD's investment is an indication of trust in the prospects of the Hellenic Bank and it is also a vote of confidence to the Cypriot economy from a prestigious international organization. The additional capital is expected to contribute to the development of the Hellenic Bank and the resolution of non-performing loans,"he said.

Georgiades: Vote of confidence

The EBRD's participation in the share capital of the Hellenic Bank is a vote of confidence to the prospects of one of the largest and most important financial institutions in Cyprus, said in a short speech, the Minister of Finance Haris Georgiades.

"With such moves," he said, "it is confirmed that our banking system and the country's economy in particular, turns a page."

"Through the efforts of all of us, Cyprus has left the vicious cycle of recession behind and enters a path of recovery and development," he added.

The finance minister also noted that "we do have a long way to go and we must ensure that this course of reforms, changes and consolidation will continue and these will help our banking system as well."

He added that "we should put aside irresponsible party choices."