NewsLocalHellenic Bank-RCB Bank loan agreement prevents stronger impact on island's banking sector

Hellenic Bank-RCB Bank loan agreement prevents stronger impact on island’s banking sector

Hellenic Bank’s announcement on Tuesday that it will acquire an up to €556m performing loan portfolio from RCB Bank Limited means a stronger impact on the island’s banking system has been prevented.

The unavoidable impact was sparked from the Russian invasion in Ukraine and the prompt EU, British and US sanctions against Russian interests, Philenews reports.

The agreement leaves Hellenic Bank a winner but also  seems to take RCB Bank out of a difficult position as a consequence of the volatile state of play. Because the agreement allows the bank to have sufficient liquidity for clients’ needs.

Hellenic Bank has increased its customer base and “got rid” of part of excess liquidity by purchasing the serviced loan portfolio – a good quality asset – from RCB Bank.

Insiders said RCB’s move is just the beginning and signals other developments regarding the bank’s operating model which is to focus more on corporate portfolios and asset management.

The day Russia invaded Ukraine, Russian state-owned VTB Bank, which got slapped by the U.S. with sanctions the same day, transferred its stake in Cyprus’ RCB Bank to the two remaining shareholders, both of which are companies registered in Cyprus.

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