CREDIT facilities of more than €1 billion were granted in 2011 by the two large banks to members of their Boards, which were subsequently proved that they exceeded the limits set by the law.
Confidential data from the Central Bank register in detail the credit facilities granted by the two banks to directors and related parties.
The law prohibits banks to lend more than 20% of their funds to their directors.
Based on the data, the two banks exceeded this threshold in 2011, possibly due to capital losses after the haircut on Greek bonds.
Following the resignations of directors in 2011 and 2012, total loans declined significantly.
Among the credit facilities granted by Bank of Cyprus is that of former Chairman, Theodoros Aristodimou. In 2008 total facilities amounted to €182 million and by 2011 they reached €317 million. The CB data indicate that of the €317 million, there was no collateral for €25 million.
In the case of Cyprus Popular Bank, they are the credit facilities associated with former board member Platon Lanitis. Mr Lanitis had facilities of €300 million in 2008, which rose to €347 million by the end of 2012. The data indicate that for €16.5 million from the amount of €347 million there was no collateral.
Former CEO of Bank of Cyprus, Andreas Eliades had facilities of €4.4 million in 2011 million of which €1.1 million was not secured (non-secured).
Former CEO of Cyprus Popular Bank, Efthimios Bouloutas, had facilities of €2,2 million in 2010, which was almost all secured and former non-executive chairman Andreas Vgenopoulos had facilities of €1.6 million, of which €0.3 million was non-secured.
The facilities provided by Bank of Cyprus include €64 million, given to two former owners of Uniastrum, almost fully secured.
The figures of Cyprus Popular for 2011 include an amount of €105 million of Vassilios Theocharakis, of which €75 million are presented as non-secured.
Former head of the risk management of the Bank, Demetris Spanodimos had in 2011 facilities of €14 million, of which €11 million was non-secured.
The Central Bank data do not indicate in what form is the collateral that banks had for the facilities granted.
Unlike Bank of Cyprus, Cyprus Popular in 2011 exceeded the limit of loans that may be granted to related parties without collateral. The threshold is 2% of the equity of the Bank and they had reached 8.66%.
The data also include the balances of many other executives of banks and their related companies.