Co-op boss denies preferential treatment

Outgoing Central Co-operative Bank (CCB) boss Erotokritos Chlorakiotis on Thursday rubbished suggestions he had received preferential treatment in securing millions in loans and that they were not being paid off.

Speaking at the CCB’s AGM, Chlorakiotis said he had not even received one cent in preferential treatment, in the form of lower interest rates, adding that his loans were fully secured.

Chlorakiotis described the allegations against him as mud-slinging, saying that he had always “walked the avenue of honesty and virtue” without getting involved in dubious dealings.

“If all loans in all Cyprus’ banks were as secure as the loans of Chlorakiotis’ family, we would be a global example because credit institutions would not lose a cent,” he said.

One of the collaterals was a 41 decare plot of land bordering the sea, Chloraka’s tourist avenue, and a five-star hotel that will be opening soon, he said in response to reports that his mortgaged property was not worth much.

Chlorakiotis conceded that his loan had been restructured “like those of thousands of people” and wondered whether it should have been exempted because it was his.

Recent reports said Chlorakiotis, his wife and daughters, and a company whose sole shareholder was his wife, received €10.9 million in loans from the Strovolos Co-op several years back, which were not being paid off.

One media outlet also published a letter to Chlorakiotis written by former Central Bank of Cyprus governor Athanasios Orphanides on March 8, 2010, in which he speaks of the significant delays in repaying the loans.

Orphanides suggested there was a conflict of interest, since it appeared that the loans kept Chlorakiotis from taking any measures to rectify the large capital deficit the Strovolos Co-op had.

The former CBC governor added that despite the problematic situation, Chlorakiotis and his family managed to restructure their debts, securing a three-year grace period.

Some of the loans matured in 2037, Orphanides said, a period that was far beyond the date of 66-year-old Chlorakiotis’ retirement.

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