It's full steam ahead for co-operatives as they focus on their restructuring, with a tough Troika week in store, as international lenders will be expecting a progress report in a matter of days.
The delegation is not exactly in the dark on the co-operatives; drastic changes, as it is receiving weekly reports to which they make their own comments on possible omissions or additions that need to be made.
According to Phileleftheros sources, during the last briefing earlier this month, the Troika demanded a progress report from the executive leadership of the co-operative sector that must be completed by the end of April and include all restructuring steps taken thus far.
Non-performing loans (NPLs) are a priority for the co-operative sector too and by May 2 the NPLs management unit must be up and running, as a Central Bank inspection is coming up in June. Paphos co-operatives are ahead in this regard with the shrinking of its branches, allowing it to organise all NPLs and transfer them to its own management unit that is expected to start operations in the coming days, with all the systems in place.
There will be delays in the setting up of the units in Famagusta and Larnaca, due to the large number of co-operatives still remaining. Nicosia and Limassol units are on stand-by.
Co-operatives have NPLs of up to €6 billion in total, mostly housing-related. The NPL co-operatives national unit will initially deal with the over €200,000 loans with delays of over six months. At a later state it will seek to find solutions and compromises on the loans that have not been paid for more than 90 days. It has committed itself to first seek out those that can, but will not pay. The co-op leadership recently refuted reports of near-collapse because it is failing to effectively implement restructuring and handle problematic issues.