CYPRUS: Hellenic and government close to resolving 4,500 frozen Co-op accounts

Efforts are being made so as to resolve the issue which arose when thousands of ex Co-op customers were left without access to their accounts after Hellenic Bank’s official takeover last week.

Some 4,500 former Co-op customers were denied access to their accounts as they were not transferred to Hellenic Bank because they were considered to be connected to non-performing loans (NPLs).

Government and HB officials are currently in negotiations over how to resolve the issue, as Hellenic initially refused to take on the 4,500 accounts with an estimated value of EUR 20 mln.

Hellenic argues that it has not agreed to transfer accounts which are linked to NPLs as they are to remain with the Cyprus Asset Management Company, as the Co-op is now called.

The Asset Management company set up to handle the Co-op’s NPLs estimates the value of the accounts to be at EUR 7 mln.

An agreement needs to be brokered if the owners of these accounts can regain access to their money.

Hellenic Bank has said it is willing to help with the situation created and for which “it bears no responsibility and is at the disposal of the particular customers to immediately open new accounts".

The House Audit Committee following an extraordinary session last Saturday called on Hellenic Bank and the former Co-op to find a solution by Monday.

Stavros Iacovou, acting General Manager of the ex-Co-op, told MPs that the 4,500 accounts in question were assessed as serviced and therefore “the customer reaction is justified”.

The old Co-op informed the public that they can get in touch with them by phone number 22 743500 and report any problems they are facing with their accounts.

Meanwhile, main opposition party AKEL, said in an announcement that the government “sacrificed the Co-op in the interest of bankers and not citizens.”

“They burdened every four-member family in Cyprus with an additional EUR 40,000. They widened the road for repossession of main residences belonging to victims of the crisis, to take place at an even faster rate,” said AKEL.