Cyprus Mail

Audit firm for co-ops to be selected next week

THE finance minister will next week select the audit firm that will carry out a fair value assessment of co-operative banks a term for the €1.5 billion capital injection given to cover their estimated capital shortfall.

Following the capital injection, the state acquired 99 per cent of the co-op’s share capital.

On the basis of the decree for the recapitalisation of the co-ops, the finance ministry invited audit firms KPMG, PWC, Ernst & Young and Deloitte, to express interest for a fair value assessment of the Cooperative Central Bank (CCB) and its members.

The applications were submitted last Wednesday and the firm to carry out the assessment will be selected next week with the agreement of the Central Bank of Cyprus (CBC).

The aim is to determine the participation of the state to the CCB capital and its voting rights.

The €1.5 billion has been deposited in a special account in the CBC and will be distributed to the co-ops following the approval of their restructuring plan by the EU Commission.

The co-ops began a merger process that will see their number cut from 93 to 18.

The estimated losses of €1.5 billion emerged from a due diligence audit carried out as part of the island’s €10 billion bailout.




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