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17 September, 2019
 
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Finance Minister speaks to Euronews on Cooperative sale

A necessary decision that has shielded the Cyprus economy and led to upgrades

Newsroom

In an interview with Euronews Finance Minister Georgiades said that he understands the reactions when it comes to the sale of the Cooperative Bank, saying that there is an emotional affinity with the Cooperative which was created over time. 

‘’It was a difficult but absolutely necessary decision, that fully shielded our banking system, immediately led to upgrades of the Cypriot economy to investment grade and the decision was welcomed by the European Commission and European institutions''.

The Minister was speaking in the wake of a report that assigned blame to him personally for the collapse of the Cooperative Bank. The Bank which specialized in low rate mortgages saw its non performing loans balloon to almost 70% due to mismanagement and was unable to recover following the financial crisis of 2013. It was eventually sold to Hellenic Bank in order to secure deposits and jobs. The move freed state finances from having to support the ailing Bank, which led to credit rating upgrades from international rating agencies.

''It was a difficult, beneficial and positive decision and of course we take responsibility" said Georgiades.

 

TAGS
Economy  |  Georgiades  |  Cyprus  |  Cooperative  |  European  |  Credit  |  Bank

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