Cyprus Co-ops to shrink to 150 by end-2007

The current wave of mergers between various Cooperative Credit Institutions is seen accelerating in an effort to lower their number to 150 by the end of 2007, according to the Commissioner for the Development and Regulation of Coops, Constantinos Liras.

In his testimony before a House Finance Committee meeting, Liras said 15 Co-ops merged into 5 during 2005 reducing the total from 358 to 348. Until end of October, another 46 Coops have merged into 13, reducing the total of Coops to 302.

“The first half of 2007 we anticipate to see the merger of 108 Co-ops into 30, reducing the number to 194 and until the end of 2007 see a further reduction so that the total will be 150,” said Liras.

The government has earmarked a loan of CYP 53.5 mln to boost the capital of the Co-ops while the de minimis scheme has a budget of CYP 18 mln, of which CYP 11.5 mln have been disbursed for restructuring purposes.