Broad coalition supports plan — €5 million equity goal

The Pancyprian Cooperative Promotion Society unveiled its roadmap for establishing a new nationwide cooperative bank during a Monday evening event in Limassol, under the theme of ‘One for all and all for one’.

In the presence of Limassol MPs, the president of the Limassol district office (EOA), the Limassol mayor, and members of the public, Panikos Hambas, the president of the society, outlined plans for reviving the cooperative movement in Cyprus.

The initiative is backed by a broad coalition, including the union of Cyprus communities, cooperative commercial sectors, and 18 holding companies.

Support also comes from trade unions such as Pasidy, Peo, Sek, and Deok; educational organisations including Oelmek, Poed, and Oltek; associations of retired educators; the Cyprus police association; the Cyprus firefighters association; military associations; and a range of agricultural organisations.

“The cooperative idea is global, present throughout Europe and the world, and it must be reborn in Cyprus,” said Hambas.

He also said that the current financial environment, “characterised by banking oligopolies and citizen exploitation”, underlines the need for this revival.

“Conditions are now ripe for the establishment of a new cooperative bank,” he added.

During his presentation, Hambas focused on the dominance of the two major banks holding 85 per cent of Cyprus’ banking sector.

He contrasted this with the European Cooperative Banking Union’s significant market share of 20–60 per cent in countries like Austria, France, Germany, and the Netherlands.

Hambas argued that this banking monopoly increases risks during potential economic crises.

While Cyprus remains absent from the European cooperative movement, Hambas said that the northern part of the island recently celebrated 65 years of its cooperative presence, with the support of the European Cooperative Banking Union.

“This represents a significant political void that must be addressed,” he stated.

Furthermore, Hambas explained that the proposed bank would operate without non-performing loans, distinguishing it from systemic banks.

He said that the new bank would aim “to create a more competitive economic environment“, offering Cypriots investment opportunities through share purchases and enabling lower costs for consumers.

The cooperative bank, he continued, “will leverage innovative solutions through partnerships with established European cooperative banks”, employing modern technology and maintaining low operational costs.

He explained that the plan entails the operation of five branches—one in each city and one in a rural area—focused on serving households and small to medium-sized enterprises.

Regarding funding, Hambas revealed the need for €5 million in equity, additional working capital for the two-year preparation phase, and a clear organisational framework with regulatory compliance units.

During surveys conducted among stakeholders, 81 per cent of 1,297 individuals and 89 per cent of 74 public and semi-governmental organisations expressed dissatisfaction with their current banks.

Among the businesses who took part in the survey, 77 per cent were similarly dissatisfied.

Hambas expressed optimism about public interest in purchasing shares, priced at €100 each.

Previous meetings yielded commitments of €2.67 million from 388 individuals, while two attendees pledged €3 million each during the event.

The process is being guided by PwC, which will appoint an accredited underwriter to manage the share offering.

Hambas said that “if the initiative fails, funds will be refunded to the public minus expenses”.

“It’s essential to work diligently, fairly, and transparently,” he added.

Meanwhile, Limassol Mayor Yiannis Armeftis praised the cooperative movement’s historical role in Cyprus, describing it as a deeply rooted value supporting society’s most vulnerable.

“In times of economic hardship, the cooperative movement was the backbone for ordinary people,” Armeftis said.

“Today, more than ever, we need a strong, sustainable, and effective cooperative bank to address the needs of modern Cypriot society,” he added.

“The re-establishment of a cooperative bank based on sound foundations and modern practices could mark a positive step forward for Cyprus,” Armeftis concluded.