BUSINESS

Cyprus says much investor interest in troubled Co-op bank

TAGS: Banking, Cyprus

The Cypriot government is ready to "tangibly support" the sale of the island nation's Cooperative Bank to private investors and to guarantee the security of deposits.

Cyprus government spokesman Prodromos Prodromou said Friday that there’s already been interest from domestic and foreign investors, which bodes well for its prospects.

But he said an "organized whispering campaign" and irresponsible rumors has led to an "unjustified" withdrawal of deposits.

Prodromou blamed a political party he didn't name for trying to reap political gain by spreading rumors that have rattled depositors.

The bank is 77-percent state-owned and is the number one bank for domestic deposits.

But it's weighed down by bad loans, representing nearly 60 percent of the total loan book. [AP]

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