Hellenic Bank-RCB Bank loan deal prevents stronger impact on island’s banking sector

Tuesday’s announcement by Hellenic Bank of the acquisition of a portfolio of performing loans of up to €556 million from RCB Bank Limited means that a greater impact on the island’s banking system has been avoided.

The inevitable impact was triggered by the Russian invasion of Ukraine and the swift EU, British and US sanctions against Russian interests, Philenews reports.

The deal leaves Hellenic Bank a winner, but also appears to take RCB Bank out of a difficult position due to the volatility of the situation. Because the agreement allows the bank to have sufficient liquidity for customer needs.

Hellenic Bank increased its customer base and “did” some of its excess liquidity by buying the portfolio of managed loans – a good quality asset – from RCB Bank.

Insiders said RCB’s move was just the start and signaled further developments regarding the bank’s operating model, which is to focus more on corporate portfolios and asset management.

On the day Russia invaded Ukraine, Russian state bank VTB, which was slapped by the United States with sanctions the same day, transferred its stake in Cyprus’s RCB Bank to the two remaining shareholders, both of which are companies registered in Cyprus.

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