Cyprus launches €42 million share sale to rebuild cooperative bank

Cyprus is commencing a public share offering of 42 million new shares, each with a nominal value of €1, to fund the creation of a new cooperative bank that will replace the failed Co‑Operative Central Bank of 2018. The sale began on 22 July and will run until 17 November on the Athlos Capital platform, with a minimum purchase of 100 shares (€100). Individual citizens are expected to hold 60 % of the equity, while Cypriot‑registered companies and legal entities will own the remaining 40 %. Voting rights follow a “one member, one vote” principle, giving each individual investor a single vote regardless of share volume.

Organisers aim to submit a formal licence application to the Central Bank of Cyprus by the end of 2026, seeking full regulatory approval by 2028. The venture has drawn commentary about the need for “ethical banking”, with calls for governance structures that avoid political interference and ensure prudent lending based on borrowers’ repayment capacity. The European Central Bank’s licensing criteria—including capital quality, business plan and fit‑and‑proper assessments—will guide the approval process, with examples such as France’s Crédit Agricole and Austria’s Raiffeisen cited as comparable cooperative models.

If the initial offering does not raise sufficient capital, a secondary share issue may be launched. The initiative is presented as a cross‑political effort to blend traditional cooperative principles with modern banking standards while avoiding the non‑performing loan problems that led to the 2018 collapse.