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Crucial hours for CCB deal

July 3, 2018 at 8:22am
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Cabinet holds an urgent meeting on Tuesday as the government steps up efforts to secure backing for state guarantees for Hellenic Bank — essential for the completion of its deal with the Cyprus Co-operative Bank —  and tougher rules for NPLs .

Cabinet today has been convened to approve the Estia plan — which protects vulnerable groups from foreclosure — as well as proposals submitted yesterday by DIKO President Nicolas Papadopoulos to improve the proposed, tougher framework on NPLs. DIKO has said that its executive bureau will decide whether the party will vote for the bills.

The government is struggling to build up a majority in parliament for the two measures, with President Anastasiades expected to hold meetings with other party leaders on the issue.

The bills on foreclosures, the securitisation and sale of loans and the insolvency framework were discussed in the House Finance Committee yesterday which will continue its work this week with a view to sending the bills to the plenary on Friday.

Ratification of state guarantees for possible future losses of Hellenic Bank which is essential to the completion of the deal with the CCB is seen as pressing.

The Finance Ministry and the Central Bank told MPs yesterday that the new NPLs framework was essential in the light of new stress tests for banks.

Meanwhile, despite repeated assurances from authorities that guaranteed deposits are safe, worried depositors continued to flock  to CCB branches yesterday to withdraw funds with a 3000 euro limit introduced on cash withdrawals.

The CCB does not face a liquidity problem, but the measure was introduced to ensure adequate cash at the branches and ATMs.