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Central bank deposits-loans September data reflect agreement for Co-op bank

October 25, 2018 at 9:53am
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Data released by the Central Bank on Wednesday about deposits and loans in Cyprus, in September, reflect for the first time the provisions of an agreement between Cyprus Co-operative Bank (CCB)  and Hellenic Bank, including the €6 billion NPLs which remained in SEDIPES, a cooperative asset management company which does not have a license to operate as a credit institution.

“Total deposits in September 2018 recorded a net decrease of €230.4 million, compared with a net increase of €176.3 million in August 2018,” the Central Bank said.

Nevertheless, it adds, the outstanding amount of deposits fell by €3.7 billion in September 2018 and reached €47.4 billion.

This is mainly attributed to €3.6 billion deposits of the Cyprus government, previously held with the CCB, which remained with SEDIPES as a result of the agreement between CCB and Hellenic Bank.

The annual growth rate of deposits reached 3.8%, compared with 3.9% in August 2018.

According to the official data total loans in September 2018 recorded a net increase of €250.5 million, compared with a net drop of €187.8 million in August 2018.

Nevertheless, the outstanding amount of loans decreased by €6.3 billion in September 2018 and reached €39.7 billion.

“This is mainly attributed to €6.0 billion non-performing loans of CCB which remained to SEDIPES as a result of the above agreement between CCB and Hellenic Bank,” the Central Bank says.

The annual growth rate was zero, compared with -0.8% in August 2018.

(Cyprus News Agency)