The "Financial Crisis", which appeared in the Greek Cypriot part in 2010 and erupted with great noise in March 2013, is now beginning to be felt.
The Co-operative Bank of Cyprus (Greek Cypriot), the oldest Greek Cypriot side and the Greek Cypriot side, is privately owned, as the European Union's unconditional overhaul of the Greek Cypriot administration and its long- The issue of selling to Hellenic Bank has begun to create a new financial crisis that has been lurking for years.
The support of the Anastasiadis government to representatives of the Representative Assembly, the political party DIKO (Greek Cypriot), to announce the decision to sell the bank to the Hellenic Bank for the survival of the Cooperative Bank, and the Representatives Assembly to approve the sale of the bank, The requirement for the resignation of some of his officials, including his minister, initiated a political crisis.
After the issuance of the resignation of Nicos Anastasiadis by the President of the Greek Cypriot Administration (Greek Cypriot) and the Chairman of the Cooperative Bank against the pressure of the DIKO, the political crisis turned into a financial crime. One of the reasons is that those who resign until the appointment of the board, the unit or the bank that will manage the bankrupt loans will be in charge.
(Greek Cypriot) The decision to sell the Cooperative Bank to the Greek-based Hellenic Bank today (Friday, July 6) will be voted in the Greek Cypriot House of Representatives. Uncertainty arising from the fact that the political parties in the House of Representatives have been reluctant to sell since the debate on the issue has been very uncomfortable with the Greek depositors, depositors and shareholders, has begun to accumulate in bank statements and ATMs in the last few days. Cooperative banks allow only up to 3,000 EURO per day. This restriction triggers the crisis so much more.
After the mistrust of the poor management that started in the fall of 2017, the size of the crisis grew as the bank lost nearly 3 billion euros in deposits and then added deposits close to 1 billion euros in the last 72 hours.
The other banks are now on fire with the fear of the deposit being able to get into them as well. Although the Anastasiadis government has instructed all concerned bureaucrats and bank officials to order that "Do not escalate pressure, shave deposits, give public a message that there will not be any financial problems", the crisis continues. Another issue that escalated the crisis is that the rescue plan for the debtors named "ESTİA" (family house) was submitted to the parliament.
The ESTİA scheme owes approximately 15 thousand and includes a total of EUR 3 billion 400 million in non-refundable credits. The plan envisions the deletion of a third of the accumulated debt of those who can not pay their installments due to the crisis and who show collateral for the loan against the borrowed money from the bank. The problem is, who will pay about 1 billion 100 thousand euros, which will be deleted.
The brother of this plan is the law on the "auctions" in the bag law that the EU must provide for financial aid. That's the real deal. Borrowers outside the scope of ESTİA and borrowers that are included in the plan but can not or do not fully fulfill the conditions of ESTİA will not be included in the scope of restructuring. After that is a complete chaos. In particular, the houses of those who can not afford to borrow money from the house by mortgaging the house will be sold in the auction, which ends with a call to the highest bidder "Ala uno, ala dire" in the auction to be held on-site in accordance with the law on "auctions" to be accepted by the bag law. There will also be no authority to accept the sale price of the debt, and the homes of the borrowers will be sold for "three pennies".