Insider Business Hellenic Bank:  First instalment for red loans

Hellenic Bank:  First instalment for red loans

Hellenic Bank will submit the first claim for payment of potential loss that may be incurred by the €2.6 billion of former Cyprus Co-operative Bank’s red loans.

The first requirement relates to the period until June 30, 2019 and will be submitted within one month of the publication of Hellenic Bank’s results, that is, in October.

The results for the first half of 2019 will be released on the Cyprus Stock Exchange today. Essentially, loans from the former Co-op Bank were given to Hellenic Bank when the former collapsed and part of its good business was transferred to the latter. These loans are in the grey zone to qualify as serviced.

The Asset Protection Scheme was part of the deal to absorb the good assets of Co-op Bank and the validity of the agreement is 12 years. It was agreed that the balance of the loans would be reviewed annually and if any losses arose they would be submitted to KEDIPES for reimbursement.

The agreement includes control mechanisms such as data submissions with all requests for reimbursement to allow confirmation by KEDIPES as well as the operation of a joint monitoring committee (comprising from one member from Hellenic, one from KEDIPES and an independent officer).

There is also a mechanism for resolving possible disputes by using an arbitrator.

The Plan will cover potential losses in a nominal loan portfolio of €2.6 billion, with a defined ceiling for losses (90% for KEDIPES and 10% for Hellenic Bank). The loan portfolio is stable and does not change during the Plan.

Under the Loan Guarantee Scheme, Hellenic Bank undertook to repay the Government the guarantees granted. The first payment of the guarantee fee is expected soon and amounts to €15 million. The total guarantee fee to be paid by Hellenic Bank (in case it does not reduce APS loans based on the relevant option) will amount to €63 million.

The matter was referred to Parliament yesterday at the House Audit Committee’s meeting. A Treasury officer said that KEDIPES will submit its first Hellenic Bank claim in October. He recalled that as part of the sale of part of the former Co-op Bank’s business, a government guarantee had been granted to Hellenic Bank for the portfolio it received.


Read more:


Top Stories

New Energy Minister Natasa Pilides sworn in

New Minister of Energy, Commerce and Industry of Cyprus Natasa Pilides assumed duties on Friday, with the promise to work hard to continue the...

Turkish court paves way to turn Hagia Sophia into a mosque

A Turkish court said on Friday it annulled a 1934 government decree turning Istanbul's Hagia Sophia into a museum, ruling it was unlawful, paving the way for...

Limassol: Parents charged for child abuse and released on conditions

A 26-year-old Greek-Cypriot and a 24-year-old foreign national, father and mother respectively, suspected of abusing their 19-month-old boy were charged on Friday by the...

Cypriots allowed entry to UK without quarantine as of today

Travellers from around 70 countries and British overseas territories may as of today enter the UK without having to quarantine for 14 days, the...

MoH issues revised instructions for use of gloves

The Health Ministry issued on Friday revised instructions for the use of gloves as per the guidelines of the European Centre for Disease Prevention...



Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...

How to make triandafillo ice cream, by UK Cypriot chef Loulla Astin

  Just in time for the scorching heat, UK Cypriot chef Loulla Astin has shared her recipe for refreshing triantafillo ice cream -- or as...