Speaking at a gathering with members of the Press, Hadjiyiannis noted that due to the nature of loans in CCI's and the way these institutions work, he doesn’t see how they can benefit from such a move.

The Chairman also said that no outflow of deposits has been recorded following the recent announcement for new state support towards cooperative banks.

He also said that a total of 18% in non performing loans (NPLs) has been restructured.

Speaking about a meeting on NPLs, scheduled for Thursday, between the President of the Republic and local bank leaders, Hadjiyiannis noted the progress CCI's made in this area.

In 2014, he went on, restructuring amounted to 5.5% of NPLs, while the target for 2015 has been set to 18% of the total of NPLs.

Current restructuring is worth 150 mln euros a month, he went on, adding that the figure surpasses the goal of 120 mln.

The cure rate stands at 78% which means that eight out of ten restructuring cases are successful.

However, there is still a lot of work to be done, said Hadjiyiannis.

Onfresh loans, the Chairman of the CCB said that households and businesses are still heavily indebted. As a result, deleveraging continues with the reduction of debt standing currently at 2.5 bln euros per year.

Asked on foreclosures, Hadjiyiannis reiterated that coop banks have already dispatched numerous letters to loan-holders from the pre-crisis period, estimated at 130 mln. These cases, he said, concern commercial real estate, holiday houses, plots of land but not the primary residence.

Source: Famagusta Gazette