Non-performing loans linked to politically exposed persons (PEP) seem that played a determining role in the fate of Cyprus Cooperative Bank, leaving a legacy of high debts (€134m) that clogged the bank’s balance.
As ‘Phileleftheros’ newspaper reported, in June 30 2018, the NPLs linked to specific politically exposed persons reached €250m, with delays of €90m, while PEP had deposits of €37m.
At the same time, PEP loans were €179m, with a €44m delay and deposits of €137m. There was an estimated number of 1,500 PEP related to Coop bank by the end of June.
It is also worth noting that PEP’s loans appear to have the minimum repayments, since from €254.14m recorded since 30/9/2015, they were just reduced by 1.64% until 30/6/2018 to €249,98m. Their delays increased by 45,6%, from €62,1m to € 90,5m. At the same period, the bank wrote off PEP loans of €6,1m.