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Cyprus

Co-op freezes defaulters’ accounts

The Co-op bank on Friday froze the savings accounts of a number of its customers with non-performing loans in a bid to force them to come to an agreement with the lender regarding their dues.

The bank said it had frozen term deposit accounts of people who owed money but were not servicing their loans. The freeze depended on the amount the people owed.

If they had more cash in their account than the amount owed then the balance will be withdrawn. If it was less, the whole amount was frozen.

Savings accounts were frozen from €2,500 upwards. Current accounts were not touched.

The move comes a few days after Hellenic bank agreed to acquire parts of the Co-op bank. Non-performing loans are not part of the deal while Hellenic will take over deposits. Freezing them will prevent them from moving to Hellenic before sorting out the debt.

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