The Political Bureau of AKEL on the Finding of the investigation into the Collapse of the Cyprus Cooperative Bank and the Anastasiades-DISY government’s responsibilities

AKEL C.C. Press Office, 14 March 2019, Nicosia

The Political Bureau of the C.C. of AKEL in its session today discussed the issues arising from the Finding of the investigation into the collapse of the Cyprus Cooperative Bank and the stand taken by Anastasiades-DISY Government on the matter.

The Political Bureau of AKEL concluded the following:

1. The Finding clearly and in a well-substantiated way analyzes the reasons for the collapse of the Cyprus Cooperative Bank. According to the Finding, “the final collapse of the Cooperative Bank in 2018 cannot be sought in what happened before 2013. It must be sought in the mistakes, omissions, inactivity, incapacity, criminal negligence, and perhaps even illegal practices committed by those who undertook to handle the cases of the Cooperative Credit Bank from the recapitalization and thereafter.”
2. The Government’s claim that the collapse of the Cooperative Bank was predictable and unavoidable does not make any sense. The Finding points out that, “The Cooperative Bank was judged to be sustainable and it was on the basis of this conclusion that the plan for its recapitalization went ahead. It was judged to be sustainable not only by the competent bodies within Cyprus, but also by the international lenders of the Republic of Cyprus”.
3. It was the government itself that undertook the management of the Cyprus Cooperative Bank and its collapse is the result of its own policies that were targeted and designed to its selling-off. The government’s refusal to assume even some responsibility for the collapse of the Cooperative Bank for the umpteenth time demonstrates that the government is callous and authoritarian.
4. The refusal by the government and ruling forces to take on their responsibilities in essence constitutes a rejection of the Finding, which they otherwise claim to supposedly respect, indeed at the very moment, when publicly and from the podium of the House of Representatives, they pledge to accept the Finding of the investigation regardless of its content.
5. The refusal of the government and ruling forces to take on their responsibilities has eroded the very few shreds of credibility they have left. The Anastasiades – DISY government is irresponsible, untrustworthy and addicted to lies, which they continuously project on a daily basis with the help of the mass media in a coordinated way with them. During the pre-election campaign, both in 2013 and 2018, they were portraying themselves as having solutions for everything and promising the moon and the stars. After the presidential election they cut deposits, destroyed the Cyprus Cooperative Bank, sold off public property and took interwoven interests and corruption to new heights, exposing Cyprus internationally.
6. With their catastrophic policy, the government and ruling forces loaded 8 billion Euros on to the backs of taxpayers and future generations, in addition to the imposition of wage cuts and the dismantling of the welfare state, which resulted in inequality and poverty rising sharply to unprecedented levels.
7. We convey the message to the government and ruling forces that their efforts to turn society’s attention away from their enormous responsibilities for the collapse of the Cyprus Cooperative Bank will not pass.

AKEL will continue to demand:

• The resignation or dismissal of the Minister of Finance Mr. Haris Georgiades.
• The continuation of the investigations into civil and criminal responsibilities, which are identified in the Finding. It is our position that those who have such responsibilities should see them assigned for punishment and catharsis to be delivered.
• Protection of the assets of the Cooperative Bank. Already – as a result of AKEL’s intervention – the procedures for the sale of the real estate property of the Cooperative Bank have stopped. In addition, through the parliamentary process, the Party is proceeding to the investigation of all the sell offs that have been made since 2013. At the same time, AKEL will continue to demand the protection of the commercial activities of the Coop Bank. The Coop companies are profitable and have millions of Euros in reserves.
• Transparency and investigation of the Non-performing Loans of Politically Exposed Persons. We stress that AKEL, when the issue was once again raised in the House of Representatives, had supported and tried to ensure full transparency.

By demanding the assumption of responsibilities by the government, but also the protection of the assets and property of the Coop Bank, AKEL will seek co-ordination and co-operation with the other opposition parties.