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Cyprus

Co-ops: no need for further capital

The Co-operative Central Bank (CCB) does not need additional capital under the current circumstances and any potential requirements in the future would probably be due to the effects of Brexit, MPs heard on Monday.

Speaking before the House finance committee, the head of the co-op administration unit Dionisios Dionisiou, said any capital requirements should be covered by June 30 next year or September 30, 2018.

Come what may, he said, based on the agreements it has signed, the CCB must conclude procedures and be ready to be listed at the Cyprus stock exchange by the end of the year.

Dionisiou was presenting the committee the finance ministry’s report on the co-ops, nationalised in 2013 as part of the island’s bailout. Taxpayers have paid €1.5b, and an additional of €175m in 2015.

If listing approval was not received by the end of the year, the next step would be the merger of the 18 co-ops into one.

Dionisiou said the CCB’s new restructuring plan provided for the gradual reduction of the state’s participation.

The ministry official said there were no capital requirements at the moment but international developments such as Brexit and the turbulence at Deutsche Bank and the Italian banking sector could have adverse effects.

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