NICOSIA, Cyprus (AP) — An inquiry into the demise of Cyprus’ Co-operative bank has faulted senior executives for bad judgment, inaction and ineptitude in dealing with a mountain of bad loans.
The inquiry’s 800-page report released Wednesday recommended that police initiate possible criminal probes on some top executives over ‘suspicious’ loan write-offs and wasteful spending.
It also pointed to the finance minister’s “heavy burden of responsibility” for not firing executives or taking corrective actions.
The Cypriot government became the troubled bank’s majority shareholder with a 1.5 billion-euro bailout in 2013 as part of a rescue deal the country received from international creditors to avoid bankruptcy.
Cyprus-based Hellenic Bank bought out the lender last year.
The inquiry said bad management had plagued the bank from its beginnings.
