THERE has been reaction in the co-operative movement over a decision for widespread mergers as part of the island’s bailout deal, it emerged yesterday.
International lenders and Cypriot authorities agreed last November that co-operatives must shrink in number – from 96 to 35 – mainly through mergers.
According to the chairman of the co-operative federation, there has been some reaction inside the movement over the prospect. But Andreas Mouskallis did not appear concerned.
“I think they will agree when the reasoning is explained,” he told state radio. “We are ready to present a merger plan at this moment.”
As part of November’s agreement, supervision of co-operative banks would be shifted to the central co-operative bank from the trade and industry ministry.
The Central Bank of Cyprus will also have a role in the supervision.
Mouskallis said people should show self-restraint and put selfishness aside.
“We should all realise that our country is under siege because of our mistakes, but also because of the troika and our friends the Europeans,” the former AKEL MP said.
Mouskallis said the co-operative movement must be stronger in the coming years to help people going through austerity.
He said delays have been observed in the repayment of loans “but we will be on the side of the people and support them under any circumstances.”
It did appear however that the movement was benefitting from the problems faced by commercial banks and the flurry of negative reports in the past year.
“People have embraced the co-operative movement and raised its deposits by €861 million (in 2012),” Mouskallis said.