Cyprus’ next bailout instalment of €1.5 billion for recapitalising the co-operative banks is expected to be approved by eurozone finance ministers during today’s Eurogroup meeting in Lithuania.
According to a eurozone official, Cyprus has fulfilled all its obligations and there are no pending issues, so the €1.5 billion will be released by the European Stability Mechanism (ESM) on September 27, followed by €86 million from the International Monetary Fund (IMF) in the next few days.
“The compliance report confirms that the Cypriot programme is on the right track, the agreed measures have been applied and some of the structural measures had been approved before the programme even started,” the EU official said yesterday.
The same official added that the Bank of Cyprus exited the restructuring scheme in July, while there is a road map to lift measures on bank restrictions and another against money laundering.
The rest of the banks will be restructured by the end of the year.
Commenting on Greece, the official said that it will not be discussed today due to a pending evaluation on November 23 and that talks on Greece have been scheduled for the next Eurogroup meeting on October 14.
Meanwhile, former CEO of the Co-operative Central Bank Erotokritos Chlorakiotis stepped down during yesterday’s 44th General Assembly after stressing that accusations regarding him or his family members receiving favourable treatment and rates on their loans were completely unsubstantiated.
“If all loans in Cyprus banks were as secure as the Chlorakiotis family loans were and still are, we would set a global example as not even a cent would be lost at any bank,” Chlorakiotis said.
The former CEO added, however, that he is leaving as a proud and satisfied man who gave everything he had to co-operative banking.
“I have walked down the boulevard of honesty and virtue, without being implicated in any kind of deceit. I never had nor agreed to have such people around me,” he added.
Regarding the restructuring of his loan, Chlorakiotis said that this happened with tens of thousands of borrowers both in the co-ops and in other banks and wondered why his family’s loan should not be entitled to the same treatment amidst a crisis.
He thanked all his associates who had worked with him since he went into co-operative banking in 1981, and especially during the first years following the 1974 invasion when difficult and harsh decisions had to be made to save the co-ops.
According to figures revealed during the assembly, the co-ops recorded profits of €62.4 million in 2011 compared to €20.3m in 2010.
In 2012 profits came to €53m while during the first six months of 2013 preliminary results show a lower €20.6m in profits.
The total bank assets up until June 2013 come to €4billion, loans and other credit reached €1.9b, deposits €3.4 billion and the bank’s own capital came in at €288 m.