CCB & Altamira Asset Management Form Joint Venture To Tackle NPLs

19 July 2017 – Famagusta Gazette

Cooperative Central Bank and Altamira Asset Management have decided to form a joint venture to manage the former’s non-performing loans and real estate.

At the same time, after a relevant resolution, the Bank decided to change its name to “Cyprus Cooperative Bank” and to introduce the total issued share capital of the Bank, totaling €6,036,000,000, of a nominal value of €0.28 each, to the main market of the CSE at a price of €0.10 each in consultation with the competent supervisory authorities and the European Central Bank.

The resolution, approved by an extraordinary General Shareholders’ Meeting, deals with the creation of a ten-year old consortium between the CCB (49% ) and Altamira (51%) for the management of NPLs (€7.2bn) and real estate (€0.4bn).

In a statement, the General Manager of the Cyprus Co-operative Bank, Nikolas Hadzigiannis said that “the approval of the cooperation with Altamira” is in many ways a very positive development for the Bank “, adding that” this cooperation constitutes a landmark for the Bank, as it takes us to the next stage of managing loans in arrears, in line with European banking practices. ”

“The Bank has set ambitious but realistic targets for the future of overdue loans with this great partnership so as to get out of the problem in the next five years. We move forward decisively,” he added.

Altamira is the second largest asset management company in Europe with a portfolio under management worth €65 bn.

In an email to the CCB, Altamira’s General Director, Julian Navarro Pascual expressed satisfaction over the very significant business deal that has come after lots of dedicated preparation. He also expressed his readiness to face the challenge on Cyprus soil.

Finance Minister Harris Georgiades, in a statement issued after CCB’s announcement, described the decision to form a joint platform with Altamira as a decisive step towards dealing with its NPLs.

Original story: Famagusta Gazette

Edited by: Carmel Drake