Discussions a Troika delegation is having at the Central Bank concentrated on issues concerning the Hellenic Bank, the Central Bank announced Thursday.
Central Bank Spokeswoman Aliki Stylianou, in a written statement, said a meeting took place with the Hellenic Bank’s Executive Officers, during which they examined the procedure to recapitalize the bank and cash flow issues as well as non-performing loans.
Stylianou said that the Troika delegation (EC, ECB, IMF) also met Alpha Bank officials who were expected to present the situation at the bank as it stands, following the implementation of the restrictive measures announced by the Central Bank.
The Troika was also due to meet with representatives of land development companies to discuss the problems the sector is facing as well as prospects, as well as the Commercial Banks Association to examine issues facing the banking sector.
On Friday, said Stylianou, Troika meetings will concentrate on evaluating compliance with the Memorandum of Understanding Cyprus has signed with its international lenders and there will be meetings with the new Board of Directors of the Cooperative Central Bank, consumers’ associations as well as meetings with associations of small to medium sized businesses and with two international banks operating in Cyprus.
In March this year Cyprus came close to a financial meltdown when its two largest banks requested state aid to cover mammoth losses due to soaring bad loans related to the housing sector and the write down of the banks’ Greek bond holdings as a result of the Greek sovereign debt haircut. Excluded from international markets, the Cypriot government applied for financial assistance.
The government agreed with the Troika (European Commission, European Central Bank and the IMF) on a €10 billion bailout, which featured a 47.5% haircut on uninsured deposits in Bank of Cyprus, the island’s largest lender to replenish the bank’s capital shortfall. Cyprus Popular Bank would be wound down with its good part absorbed by BOC.
Get all the latest news and videos in your inbox. Register FREE