The Cypriot taxpayer continues to pay and the Hellenic Bank to collect. In the first two and a half years of implementation of the Loan Guarantee Plan, in the context of undertaking the work of the Co-operation, the receivables of Hellenic Bank reached 99.1 million euros! It is noted that the trend is increasing, since in 2020 Elliniki submitted new claims for compensation amounting to 26.8 million euros, of which 12.7 million euros (or 47%) relate to the fourth quarter of the year.
Relevant data were published by the Cyprus Asset Management Company (KEDIPES. It is also pointed out that the Plan lasts until 2030 (12 years), while the agreement that was concluded includes a clause which explicitly states that in case KEDIPES does not can meet the above obligation, the state will be obliged to pay compensation.
This justifies all those who expressed opposition and opposed the sale of the Co-operation to the Hellenic Bank and those who spoke of burdensome to the detriment of public terms.
As it is known, the Loan Guarantee Plan concerns the guarantees granted by the government to Elliniki, to cover possible losses as well as the Bank's accounting provisions on the loans transferred by the Cooperative. It is also noted that in the way the agreement was concluded, Elliniki is also entitled to compensation due to the coronavirus crisis. In fact, the Bank has taken advantage of the above possibility, since as mentioned in the announcement of KEDIPES “the receivables for 2020 showed an increase due to the increased accounting provisions due to the pandemic and the suspension of sales”.
The agreement between the government and Elliniki had been approved by Parliament with the votes DISY – DIKO – EDEK – ELAM, despite the fact that it was not audited by the Legal Service after the Ministry of Finance chose a foreign law firm as its advisor. The Ministry of Finance assured the Parliament that the possible losses would be up to 31 million euros in the first year and a total of up to 155 million euros over a period of 12 years. Nevertheless, in the first two and a half years, the claims have already reached 99.1 million euros and no one knows where the issue will end up by 2030, when the agreement expires.
It is worth noting that the above losses are in addition to the approximately 8 billion euros that cost the closure of the Cooperative as well as the social problems that were created mainly due to the closure of hundreds of branches.