Menu
Business

Fin Min: Impact of Hellenic Bank guarantees ‘totally manageable’

July 4, 2018 at 2:53pm
Edited by

Finance Ministry Harris Georgiades said on Wednesday that the impact on public finances of state guarantees for Hellenic Bank as part of its agreement with the co-op were ‘totally manageable.’

He told told the House Finance Committee that thanks to revenue to be generated by the Cyprus Co-op Bank or its successor agency from NPLs and performing loans, it would be able to cover any non-expected losses sustained by Hellenic as part of the deal, without the second guarantor — the state, having to intervene.

He said the CCB would manage the NPLs and performing loans not transferred to Hellenic, from which it will generate millions in revenue. The state guarantees would only be activated if the CCB is not in a position pay.

The government is seeking House ratification of the state guarantees which are integral to the Hellenic-CCB agreement. The plenary is expected to vote on the issue on Friday.