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:

https://in-cyprus.com/administrative-peace-at-hellenic-bank/

 

Top Stories

Bill Withers, soulful singer of ‘Ain’t No Sunshine,’ dead at 81

Bill Withers, a soulful singer best known for the 1970s hits "Lean on Me," "Lovely Day" and "Ain’t No Sunshine," has died at age...

Post Office mobilises Parcel24 service in fight against Covid-19

Cyprus Post is mobilising the 24-hour Parcel24 locker systems to boost efforts to contain the coronavirus by helping the public avoid visiting the Post...

Customer service by Social Insurance Services amid Covid-19 measures

The Social Insurance Services, within the framework of preventive measures to address COVID -19, inform the public that the online application / JCC Smart...

House doubles fine for Covid-19 decree, approves prison measures

The House of Representatives on Friday approved a government bill doubling the out of court fine for violating the stay at home decree from...

One more dies, 40 test positive for coronavirus

One more person has died, a man aged 64 with underlying health conditions, the Health Ministry said on Friday, and another 40 people have...

Taste

Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....