Insider Business 'Plunder' at the co-op

‘Plunder’ at the co-op

Years of ‘plunder’ at the co-op, including dodgy loans and inflated collateral have contributed to the creation of non-performing loans of €7.5 billion, Phileleftheros reported on Thursday.

On Wednesday, attorney general Costas Clerides announced that he would appoint a committee of inquiry on the Cyprus Co-operative Bank.

And President Nicos Anastasiades requested that such a committee of inquiry bring in foreign experts to probe all aspects of the operation of the co-op credit system, the Co-operative Central Bank and the Cyprus Co-operative Bank.

On Tuesday the European Commission approved Cyprus’ measures to facilitate the liquidation of the CCB under national law. These involve the sale of some CCB assets and deposits to Hellenic Bank.

The government approved the CCB deal, following an offer submitted by the Hellenic Bank to buy out the ‘good part’ of the bank.

The decision has raised a storm of protests, with Opposition parties accusing the government of a sell-out and of mismanagement. AKEL has been especially critical, with its leader Andros Kyprianou saying on Wednesday that the government had effectively closed the CCB and shifted the burden to the tax payer.

Among the examples cited by Phileleftheros is that of a large Nicosia co-op which approved loans of €60m with inflated valuations of the collateral made by only one property valuer for which in 2015 the co-op had to make provisions of  €40m.

Other cases involved loans given to associations, even though this was illegal. The loans were due to be repaid by grants the local co-ops would give these associations every year.

Another example is that of a co-op which temporarily ‘amended’ its books to show profits so as to issue a grant of €1m to a specific association, and then changed them back to reflect the true picture.

The newspaper said there were also cases of individuals with links to politicians and candidates receiving loans without collateral, and these loans are now non–performing.

Moreover, a loan of  €200,000 was given to a young woman with health problems who was not in a position to sign the contract, and her finger prints were used instead. The loan was never repaid and with interest and penalties now stands at €900,000.

Read more

https://in-cyprus.com/news/business/committee-of-inquiry-to-probe-co-op/

Top Stories

Total of 113 fines for violation of covid-19 restrictive measures

Police issued 111 fines to individuals and two more to shop owners all across Cyprus over the past 24 hours for breaching measures aiming...

Cyprus-UAE review prospects of advancing bilateral relations

The foreign ministers of Cyprus and the United Arab Emirates have reviewed the prospects of advancing relations between the two friendly nations across all...

New covid-19 cases on the decrease but hospital admissions on the rise in Cyprus

New coronavirus cases in Cyprus were on the decrease over the past couple of days but health experts are cautiously optimistic that the strict...

Approval of revised Cyprus 2021 budget closer but still not certain

It seems that approval of Cyprus’ revised 2021 budget which is to be put to the vote before parliament on Thursday is almost certain...

National Guard members sleep in the Capitol Visitor’s Center  ahead of Joe Biden’s inauguration 

National Guard members sleep in the Capitol Visitor's Center on Capitol Hill, ahead of U.S. President-elect Joe Biden's inauguration, in Washington, U.S., January 18,...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...