Cyprus Cooperative banks told to lower interest rates

Central Cooperative Bank members approved the bank's accounts, with Commerce, Industry and Tourism Minister 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.
CCB Director General Erotokritos Chlorakiotis told the 42nd AGM that the bank's profits had dropped dramatically in 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 EUR 191 mln, with an issued stock capital of EUR 78.1 mln, and noted that the consequences of the global financial crisis in 2008 had continued in 2009. He said profits reached EUR 33.4 mln in 2008, with total assets worth EUR 2.91 bln at the end of 2008.
Addressing the AGM, Finance Minister 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.
CCB board Chairman Demetris Stavrou said the adverse consequences of the global financial crisis were affecting the Cypriot economy and the cooperative movement and said that the bank was implementing policies to overcome these difficulties.