During the first assessment of the Memorandum of Understanding held in July of 2013 and in the context of the restructuring and recapitalization strategy of Cooperative Credit Institutions (CCIs), the Troika set among others, as a prior action for the granting of the amount of €1,5 billion to recapitalize the Central Cooperative Bank (CCB) and the CCIs, the preparation and enactment of the related legislation which would determine the structure that will be managing the participation of the Republic of Cyprus in the Ownership Structure of Credit Institutions.
The Law of the Establishment and Operation of a Management Unit for the Participation of the Republic of Cyprus in the Ownership Structure of Credit Institutions, Law of 2013 (Ν106(I)/2013), published in the Gazette of the Republic on 9 of September of 2013.
According to the Law (Ν106(I)/2013), the responsibilities of the Management Unit, among others, are:
- Management of the participation of the Republic as a shareholder in the ownership structure of credit institutions.
- Monitoring and implementation, in cooperation with the Central Bank, of the provisions of the Restructuring of Financial Institutions Law and its related decrees issued by the Minister.
- Ensure the maximum possible return from the participation of the Republic as a shareholder in the ownership structure of credit institutions.
- Preserve the capacity of the bank to continue its operations as a going concern.
- Ensure compliance with any conditions or commitments attached to any decision of the European Commission in relation to EU state aid and competition law.
- Assignment of the execution of any tasks or powers of the Minister, conferred to him by virtue of the Restructuring of Financial Institutions Law, as it may be amended or replaced, excluding the power to issue decrees, which are conferred in writing to the Unit.
- The entering into written agreements with credit institutions which shall contain all the details and terms for the recapitalization.
- The monitoring and evaluation of the restructuring plans for the credit institutions.
- The submission of proposals to the Minister concerning the fit and proper criteria and submission of proposals for the appointment of the members of the Board of Directors or the Committees of the credit institutions which the Republic will participate.
- The participation of a representative of the Unit as an observer at the meetings of the Board of Directors or the Committee of the credit institution.
- The representation of the Republic to the General Assembly of the credit institution.
- Assessing and monitoring the economic value of the participation of the Republic to the Credit Institution.
- The management of the investment of the Republic in securities of credit institutions
- According to Articles 12 (1-2) of the Law (Ν106 (I) / 2013) the Management Unit, until the end of March of each year, prepare and send to the Minister of Finance and the General Director of the Ministry, an annual report for the previous year on the management of the participation of the Republic in the ownership structure of credit institutions. The Minister approves the report, and after informing the Council of Ministers shall submit the annual report to the President of the House of Representatives no later than April 30 of each year.
Economic Officer A’
Head of the Management Unit
Ministry of Finance
Tel.: +357 22401528
Fax: +357 22401514
Address: Gregori Afxentiou 7B, 2nd floor, 1096 Nicosia, Cyprus