ECB: Cooperation with European Commission on Co-operative Bank liquidation

The European Central Bank (ECB) is in close cooperation with the European Commission, which has approved Cyprus`s measures to facilitate the liquidation of the Cyprus Co-operative Bank and assess its next supervisory steps.

“As supervisor of this bank, we have worked closely with the European Commission on this case and are aware of the Commission’s decision to approve the Cypriot liquidation aid measures for Cyprus Cooperative Bank (CCB)”, said an ECB Spokesperson on Tuesday.

He added that the ECB “will undertake the assessment for the next supervisory steps as we are responsible for approving the sale of business and if needed, capital raising and qualifying holdings.”

The European Commission officially announced on Tuesday its decision to approve, under EU rules, Cypriot measures to facilitate the liquidation of Cyprus Cooperative Bank (CCB) under national law, which involve the sale of some CCB assets and deposits to Hellenic Bank.

The government of Cyprus has approved a deal on the Cyprus Co-operative Bank, following the offer submitted by the Hellenic Bank to buy out the bank.

According to the offer, the Hellenic Bank undertakes to pay the whole amount of the clients’ deposits worth 9.7 billion euro and assumes assets of 10.3 billion euro, including loans, bonds and cash as well as non-performing loans of 0.5 billion. Assets of the Cooperative amounting to 8.3 billion euro will be taken over by the state, most of which is non-performing loans.

Cyprus Cooperative Bank (CCB) is the second largest credit institution in Cyprus, as of February 2018, the Bank had assets with a book value around €12 billion, it had deposits around €11 billion and gross loans in the amount around €11 billion.CCB had around 2,700 employees and a network comprising around 170 branches in Cyprus.