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Cyprus Co-op Bank-Altamira deal under BDO’s microscope

March 27, 2019 at 7:55am
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BDO advisory firms of Ireland and Cyprus were chosen by KEDIPES to evaluate the overall process on the management of non-performing loans inherited from the collapsed Cyprus Cooperative Bank. These now belong to the company whose sole shareholder is the state.

Following a competitive bid, the firm was chosen to carry out a series of tasks, such as the examination of the organisational structure and business plan of KEDIPES, the evaluation of the existing agreement with Altamira and the possibility of selling SEDIPES’ Altamira Asset Management Cyprus Limited.  Under the agreement in question the Spanish Altamira retains first right in such a case. Another task is the examination of the existing agreement with Altamira and the negotiation of a new one, if such a need does come up.

There is, of course, the possibility that rather than having a new agreement with Altamira, the BDO group may launch a new tender in order to find another company to serve the loans. These provisions were included in the plan approved by the European Commission before the process for the transfer of good bank accounts from the Cyprus Co-op Bank to Hellenic Bank could take place. And before the conversion of the former into a company holding the non-performing loans which were not transferred to Hellenic.

As a matter of fact, the Commission’s decision last June allowed six-months for KEDIPES to sell 49% of Altamira Asset Management Cyprus Limited and 15 months for the alternative procedure of finding another company that would take over the management of non-performing loans.

In the meantime, the appointment of new members of KEDIPES board is in the process with the Central Bank of Cyprus having the final saying in this.

 

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