The Council of Ministers has decided that the report of the Investigation Committee that probed Cyprus’ economic debacle should be handed over to the Attorney General who will study it with a view to decide whether any criminal offenses have been committed. The Council has also authorized the Committee to publicize the report.

Deputy Government Spokesman Victoras Papadopoulos has said that the report was submitted on Thursday before the Council of Ministers.

As regards the decree for the recapitalization of the Cooperative Banks, Papadopoulos said that the Council decided that the Minister of Finance has the power to issue decrees with the consent of the Central Bank of Cyprus, for the regulation or the better implementation of the provisions of the law for the recapitalization of the Cooperative Central Bank of Cyprus.

He noted that the decree provides that the capital increase will be up to 1.5 billion euro and fully covered by the Republic, by allocating to the bank a stock bond of equal nominal value of the European Support Mechanism bond valid for 18 months, that will be automatically renewed at its expiry or will be exchanged in full with cash.”

According to the decree, he continued, an independent rating agency will assess the value of the existing shares of the Central Cooperative Bank and the Cooperative Credit Institutions on a comprehensive basis, with a view to determine the percentage of the participation of the Republic in the ownership structure of the Central Cooperative Bank.

Papadopoulos noted that in the case of interest from a strategic investor who is willing to acquire all or part of the participation of the Republic in the ownership structure of the Central Cooperative Bank at a certain price, the right of first choice for the shares on the above price is given to existing shareholders.

Papadopoulos added that the Minister, with the consent of the Central Bank and the Parliamentary Finance Committee, appoints the majority or all the non executive and non executive independent members of the Central Cooperative Bank board.

He further said that the basic parameters of the decree have been agreed with the EU Competition Directorate General and the Troika, and that the decree will be communicated directly to the EU Competition Directorate General for approval

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