Coop receives two binding offers from investors Update 2

first_imgCyprus’s second largest lender, the state-owned Cooperative Central Bank (CCB), said on Monday that it had received proposals for the acquisition of its operations from two prospective buyers.Hellenic Bank, the third largest Cypriot bank, said that it was among the bidders.“The proposals are now under review by the bank’s senior management working closely with Citigroup Global Markets Limited as exclusive financial advisor to CCB,” the Co-op said on Monday, after the deadline for submission of binding offers expired. “We anticipate that the board of directors will meet as part of that review to consider the proposals and will provide further information at the appropriate time.”The Cyprus News Agency reported that the US-based Apollo Capital Management was the other bidder.In a laconic statement on the website of the Cyprus Stock Exchange, Hellenic said that it was participating in the tender initiated by the Co-op on March 19, and that it submitted an offer.“The company will, to the extent required by applicable laws and regulations, keep the investors informed of any developments on this matter,” Hellenic Bank added.In April, the government – which bailed out the CCB with two capital injections of €1.5bn and €175m in 2014 and 2015 and owns more than 99 per cent of its stock – issued bonds worth €2.4bn to the Co-op and deposited €2.5bn in government funds at the lender in an attempt to soothe depositor concerns over the bank’s solvency. These concerns had triggered significant cash withdrawals in previous months.In 2013 when the twin banking a fiscal crisis culminated into the loss of €8bn in deposits, depositors at Bank of Cyprus saw half of their uninsured funds converted to equity while those at the Cyprus Popular Bank lost all their deposits in excess of €100,000.The Co-op, the product of successive mergers of mostly poorly managed local cooperative saving banks, has made very slow progress towards reducing its non-performing loans stock.In September, the bank’s delinquent loan portfolio stood at €6.7bn or almost 59 per cent of the total. While the bank has not published its financial results for the whole of 2017, it said in December that it had meanwhile reduced its bad loans stock to €6.5bn.Last year, the government shelved its plans to hand over up to 25 per cent of the Co-op’s stock to its customers and depositors after the Central Bank of Cyprus intervened. The bank also scrapped its initial plan to seek a listing on the Cyprus Stock Exchange.Economist and former banker Marios Clerides who served as the Co-op’s managing director until mid-2015, said that he was encouraged, but would reserve judgement over the bank’s two bids.“It’s better to have to interested buyers,” he said in a telephone interview. “If you have only one, it is easy to be taken advantage of in negotiations.”One the other hand, he added, they are both seeking to acquire distressed assets at a low cost.You May LikeCar Insurance | Search AdsThe Cost of Car Insurance in Rowland Heights Might Surprise YouCar Insurance | Search AdsUndoWatch DistroTVWatch Flour Power on DistroTV. Learn delicious baking recipes.Watch DistroTVUndoBeautyHold5 Things You Should Not Do If You Are a Smart PersonBeautyHoldUndo Two of serial killer’s victims buried in PhilippinesUndoBrazil prison riot kills 52, with 16 decapitatedUndoAt least 20 killed, 50 injured in attack on VP candidate’s office in KabulUndoby Taboolaby Taboolalast_img read more

Velculescu bailout adjustment programme on track

first_imgBy Staff ReporterTHE Cyprus adjustment programme is on track, Delia Velculescu, IMF mission chief for Cyprus, has said, adding that confidence has continued to improve.She also said that the IMF expects output to contract by 4.2% rather than 4.8% this year.“Cyprus’ programme is on track. First, on fiscal policy and as has been the case to date fiscal performance remains better than expected and targets were met with a comfortable margin for the first quarter of this year,” she told a press conference on Monday on the fourth review of Cyprus’ economic programme.On macroeconomic performance, she said, output in 2013 contracted by 5.4% but it was better than the 6% expected during the last review.At the same time, confidence has continued to improve and as a result, these macroeconomic projections for the program can be revised, she said.“We know expect output to contract by 4.2% rather than 4.8% this year,” Velculescu noted.Over the medium term, she said, “we do expect some more gradual recovery with growth 0.4% in 2015.”The IMF official said programme policy implementation has continued, the cooperative sector has been recapitalised and consolidated into 18 institutions. Other banks in the sector are making progress with restructuring according to the respective plan. As a result, significant relaxation of the domestic restrictions took place over previous months, she recalled.“At the same time, on the structural reform agenda the authorities are advancing their technical and legislative work towards the implementation of key reforms such as the welfare reforms, revenue administration reform,” she noted.The mission reached staff level agreement on key policy priorities, the first is to deal with the high level of NPLs, where work still is on two fronts, she explained.“On one side the CBC has agreed to increase supervisory monitoring of bank efforts to increase the operation of capacity and put in place policies in accordance with existing real management framework to deal with the very large level of NPLs,” she said.On the other hand, the authorities agreed on the implementation of a comprehensive reform of the debt restructuring legal framework, she added.Second, maintaining sustainability remains a key objective of this programme and the authorities need to continue to prudently execute budget and fiscal targets, which they are successfully doing so far, she said.Third, structural reforms need to accompany fiscal efforts, she added. As a priority, the authorities agreed to implement welfare reform this year to protect vulnerable groups during the downturn. At the same time, they are continuing efforts to enhance efficiency of revenue administration, revenue collection by fighting tax evasion and reforming the revenue administration.Finally, the implementation of the privatisation plan is needed to increase the efficiency of the economy and lower public debt.“In sum, the authorities have continued to demonstrate strong implementation of the programme during the fourth review but given ongoing risks, implementation and timely implementation of the programme remain essential to the restoration of the economic growth,” she concluded.You May LikeLivestlyChip And Joanna’s $18M Mansion Is Perfect, But It’s The Backyard Everyone Is Talking AboutLivestlyUndoPopularEverythingColorado Mom Adopted Two Children, Months Later She Learned Who They Really ArePopularEverythingUndoSenior Living | Search AdsCheap Senior Apartments in Rowland Heights Are Turning HeadsSenior Living | Search AdsUndo Pensioner dies after crash on Paphos-Polis roadUndoCruise passenger airlifted to Paphos hospitalUndoRemand for pair in alleged property fraud (Updated)Undoby Taboolaby Taboolalast_img read more