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

Pandemic at highly critical phase in Cyprus, new appeal launched-12 cases today

  Twelve new cases of covid-19 were announced today out of three thousand 147 tests, taking confirmed infections to 1,755. The break down of new patients...

Animal abuse legislation to get tougher, with a 10 thousand fine for a first offence

  MPs are working through a tougher bill against animal abusers, including raising fines as a deterrent, just a couple of weeks following a horrendous...

No spectators at tomorrow’s Independence Day Parade

  Tomorrow's Independence Day military parade will be held without spectators due to Covid pandemic restrictions, with just officials and foreign dignitaries attending. The parade, on...

Spain in solidarity with Cyprus over Turkish violations

  Spain expressed its solidarity with Cyprus in the Eastern Mediterranean, with foreign minister Arantha Gonzales Layia noting her country's opposition to any unilateral action,...

Services not covered by GeSY and offered under it to incur fines

The Health Insurance Organisation (HIO) reminds all health care providers as well as General Healthcare System (GeSY) beneficiaries that the system does not cover...

Taste

Sheftalies

Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...

Souvlakia

Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...