Commission approves aid for financing the orderly market exit of Cyprus Cooperative Bank Ltd, involving sale of some parts to Hellenic Bank

Summary:

The European Commission approved on 19 June 2018 a set of measures put forward by Cypriot authorities to facilitate the liquidation of Cyprus Cooperative Bank (CCB) under national law. They involve the sale of some CCB assets and deposits to Hellenic Bank.

Further information:

The transaction removes around €6 billion of non-performing loans (NPLs) from the country's banking sector. It is subject to standard regulatory reviews.

The measures approved by the Commission were the final steps in the restructuring process of CCB, which was initiated by the Cypriot authorities in February 2014 and modified in December 2015. Contrary to expectations at the time, CCB – the second largest credit institution in Cyprus – was unable to return to viability.

In light of these difficulties, CCB initiated a sale process on 19 March 2018, which however did not result in any bids at a positive price. On 17 June 2018, the Cypriot authorities notified to the Commission for assessment under EU State aid rules their plans to support the orderly liquidation of CCB, including the sale and full integration of some of CCB's assets and deposits into another Cypriot bank, Hellenic Bank.

MarketWatch, 20.06.18: EU approves state aid to Cyprus Cooperative Bank https://www.marketwatch.com/story/eu-approves-state-aid-to-cyprus-cooperative-bank-2018-06-20

Cyprus Mail, 05.09.18: Co-op ceases being a bank after giving up licence https://cyprus-mail.com/2018/09/05/co-op-ceases-being-a-bank-after-giving-up-licence/

---