Cyprus Central Cooperative Bank backs calls for lower interest rates

Representatives of the Central Cooperative Bank members approved the Bank's accounts, with Minister of Commerce, Industry and Tourism Antonis Paschalides calling on the cooperative movement to take the initiative in efforts to reduce lending and deposit interest rates, through healthy competition, for the benefit of society and the country at large.
Director General of the Central Cooperative Bank Erotokritos Chlorakiotis told the 42nd Annual General Meeting, which coincided with the 100th anniversary since the cooperative movement's establishment, that the Bank's profit had dropped dramatically during the year 2009, mainly due to the reduction of Euribor, the benchmark rate of the Euro money market, from 5.4% in October 2008 to the current 1%.
Chlorakiotis said that at the end of 2009, the Bank's capital was worth EUR191 mln, with an issued stock capital of EUR78.1 mln, and noted that the consequences of the global financial crisis in 2008 had continued in 2009. He said profits reached EUR33.4 mln in 2008, with total assets worth 2.91 bln EUR at the end of 2008.
Addressing the AGM, Minister of Finance Charilaos Stavrakis praised the work of the cooperative movement and called on the cooperative and commercial banks to further reduce interest rates, in an effort to overcome the difficulties the economy is facing.
Chairman of the Trusteeship of the Central Cooperative Bank Demetris Stavrou said the adverse consequences of the global financial crisis were affecting the Cypriot economy and the cooperative movement, and assured that the Bank was implementing policies to overcome the difficulties.
Officer of the Trusteeship and Development Department of Cooperative Companies Constantinos Lyras, who chaired the meeting, referred to the cooperative movement's modernisation programme and in general its activities, and pointed out the multilateral contribution of cooperative companies to the island's economy and the various sectors of the Cypriot society.