The House approved the laws with 50 votes in favour from DISY, AKEL, DIKO, EDEK and Cyprus Green Party and 2 against from the European Party and the Citizens Alliance.

Amid reaction for the lack of information about the future of the Co-ops and the sustainability of the bank, the majority of the MPs voted in favour of the bills to give another chance to the Co-ops, the only Cypriot-owned systemic bank, as some deputies noted.

The aim of the legislation is to create a framework that enables the recapitalisation of credit institutions by the end of 2015, providing among other stipulations the creation of an independent Recapitalisation Fund, the inclusion of Recapitalisation Fund to operators that will be able to redeem all or part of the issued capital and the payment from the Consolidated Fund of the Republic of an amount of €200 million to cover the capital needs as a result of audit procedure conducted by the Single Supervisory Mechanism.

After the first recapitalisation with €1,5 billion in 2013, the state acquired 99% of the Cooperative Central Bank’s shares.

Source: Famagusta Gazette