The board of the state-owned Cyprus Co-operative Bank resigned on Tuesday as crucial consultations continued over the future of the island’s second largest bank.
The resignation was accepted by the government as the Council of Ministers met urgently to finalise the Estia scheme for vulnerable borrowers and to take on board proposals submitted by DIKO to new measures to tighten the framework on NPLs.
Government spokesman said the current members will remain in their posts until the establishment of an asset management agency for NPLs.
Reports said that the resignation of the CCB leadership had been one of the conditions set by DIKO president Nicolas Papadopoulos when he met President Nicos Anastasiades yesterday.
Speaking on Radio Active on Tuesday morning, Papadopoulos said his party expected the government to accept political responsibility for the plight of the co-op. He said the resignation of the CCB’s leadership was the minimum before DIKO’s executive bureau meets to decide on the party’s stand at Friday’s crucial plenary of the House of Representatives.