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Major Greek companies hold millions in Cypriot banks

28 March 2013 / 22:03:40  GRReporter
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The Securities and Stock Exchange Commission in Athens has required Greek companies to submit public statements of their investments and deposits in Cyprus in order to determine the impact of the banking crisis on the Greek economy. According to the latest information, the national telecommunications company of Greece, OTE, has accounts of around three million euro in the three problematic banks, namely Laiki Bank, Bank of Cyprus and Hellenic Bank.

ELLAKTOR Construction Holding has officially announced that it has an amount of 575,000 euro in an unguaranteed account in Cyprus Popular Bank (CPB) in Cyprus and of 1.9 million euro in the Bank of Cyprus, which is also in Cyprus. The total amount of deposits of the company in the Cyprus branches of CPB is 600,000 euro. The Construction Holding holds a total of 1.94 million euro in the Bank of Cyprus. The volume of the turnover of the corporation in Cyprus reaches only 1.06%.

ALUMIL, which is one of the biggest companies manufacturing aluminium systems, has announced that it holds slightly more than 867,000 euro in CPB. The total turnover of the company in Cyprus is less than 2%. For the time being, ALUMIL is unable to assess the losses of the holding because not only the cuts of unguaranteed deposits, but also the change in the business climate should be taken into account. According to initial expectations, after the height of the banking crisis, the company will reduce its activities by half in comparison with 2012.

The national lottery OPAP has announced that along with its subsidiaries OPAP-Cyprus and OPAP-Sports, it has in CPB bank accounts amounting to 1.76 million euro. Its deposits in the Bank of Cyprus are to the amount of 1.3 million euro. The company has calmed down its investors by stating that it holds no securities or other financial instruments of the two troubled banks. The Cypriot branches contribute to the total company volume only 5% of total turnover. OPAP has also emphasized that it has not yet been able to calculate the exact value of the damage from the financial drama in Cyprus, but explained that the company cannot be significantly affected because of the small contribution of its subsidiaries in Cyprus.

Jumbo retail chain has 62 shops in the Mediterranean region and in the Balkans. Three of the company’s representations are in Cyprus. The sales of these shops amount to 32 million euro, which represents 11% of the turnover of the company. The company holds 58 million euro in the Bank of Cyprus and it has not invested in shares and bonds of the bank. According to the official communication of the company, its subsidiary in Cyprus continues to operate normally. It is expected that the turnover of the Cypriot subsidiaries of the chain will fall by 20% -25% by the end of the first half of this year.

The company Koumbas owns 415,800 shares of CYPRUS POPULAR BANK PUBLIC CO LTD, which are listed on the Athens Stock Exchange. The company has reported that it does not hold deposits in the Cypriot Bank of Cyprus, CPB and Hellenic Bank. The company’s activities in Cyprus contributed 10% to the total turnover in the fiscal year 2012. Koumbas expects a 5% decline in the total turnover of the corporation due to the worsening of the situation in Cyprus. The holding has granted a common bond loan to the amount of 27 million euro and another common bond loan of 78 million euro (at a 90% discount of the face value of each bond) to CYPRUS POPULAR BANK PUBLIC CO LTD. In addition, it has borrowed 1.7 million euro from the same bank.

The unguaranteed deposits (over 100,000 euro) of Coca-Cola Hellenic in Laiki Bank and the Bank of Cyprus reach 1.7 million euro. The corporation has announced that it is not exposed to securities of Cypriot financial institutions and has stated that the turnover in Cyprus represents only 1.3% of the total volume of the company. Coca-Cola Hellenic points out that the holding is not expected to be seriously affected at present, but refuses to make mid-term evaluations of the development of the economic situation.

The Secretary General of the Union of Cypriot Companies in Greece George Michailidis insists before Mega TV that the companies that have more than 100,000 euro in Cypriot banks cannot work because the working capital has been blocked. "In practice, this means bankruptcy of enterprises," insists the businessman. Andreas Polikaprou, chairman of the Greek-Cypriot Chamber of Commerce, agrees that the companies in Cyprus that are operating outside the country will be forced to reduce their turnover, fire people or even cease operations.


Tags: EconomyCompaniesCyprusCrisisGreeceBanks
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