Continental Bank closed? Now what?

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 18:16

As I have heard (and some have read in Cyprus Today apparently) Kibris Continental has closed. Can anyone confirm this as FACT not hearsay please. Is it just a branch or the whole bank?

If so then I need help with the following:

I am in the UK and have accounts at this bank. Savings accounts and current accounts. What do I do now regarding the money I have invested and also the standing orders for electricity bills etc.

Please no sarky comments or told you so's. I need to know exactly what I can do from here or if I need to get to Cyprus soon to resolve it and if I do where do I go and who do I see??

Any help or info will be appreciated

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 20:18

125 views and nobody knows anything????

Somebody must know what the protocol is in this situation!

YFred


Joined: 06/05/2009
Posts: 1471

Message Posted:
05/02/2011 20:20

I hope they have not, but if they, have I hope they were insured. If they are insured, then you will get your money over a period of time which the administrator will specify. If they were not insured, I fear for your investment.

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
05/02/2011 20:23

Its now under government control, Im sorry I do not have details whom you go to for help.

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 20:26

It was confirmed that they had been 'taken over' by the central bank so I assume the central bank guarantee will cover any monies invested. I am pretty confident that is the case so am not panicking just yet. I really want to know what the protocol is for that (recovering invested money) and if the central bank will run accounts as if they were still in branch (hope that made sense?) That would mean payments going in and out would continue. Does anyone know if that is the case or will I have to stop all payments into and out of those accounts and start again in a different bank?

Thanks, John.

YFred


Joined: 06/05/2009
Posts: 1471

Message Posted:
05/02/2011 20:31

As a precautionary measure, I would do that anyway just in case.

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 20:45

Yes Fred had considered that but as I am in UK it's a bit difficult to do that quickly and you know what Kibtec and alike are like at hiking penalties on late payments.

Could someone post what the article in CT said please. Doesn't have to be verbatim but just the bits that are worth noting. Thanks.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
05/02/2011 21:12

As I understand it the Bank is still being run by the Central Bank (and the guarantee / insurance is intact) but 3 of the branches were closed. Girne, Guzelyurt and Gazi Magusa. The bank is still operating out of lefkosa. 0090 392 2273220.



For more information on the banks in the TRNC and the compensation scheme along with current interest rates go to http://www.ncmoneyguide.info

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
05/02/2011 21:16

Cyprus Today 5th Feb 2011



"Braches of two state - owned TRNC banks Contental and Yesilada were suddenly closed in Girne, Guzelyurt and Gazi Magusa on monday with loss of 40 jobs..."



"...every thing would be handled from our head office in Lefkosa from February 1st..."

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
05/02/2011 21:19

It was in the governments hands over a year ago.



http://www.cyprus44.com/forums/27803.asp

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 21:28

Thanks Swany, I really do appreciate you taking the time to help.



No1. Yes I was aware of that last year but was kind of glad about it at the time as it meant a modicum of safety for our money and felt it better to have the central bank control it than to have it disappear altogether.

Am still confident that money is quite safe but it's just the hassle of having to come out, jump through all the hoops and change banks. Then all the payments aswell.

Anyone else have money in there???

Cheers for the help so far. John.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
05/02/2011 21:31

Good luck John. I hope it works out well for you.

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
05/02/2011 21:52

I was told by an employee at the Girne branch that all accounts would be administered by the lefkosia branch so it would be best to contact them.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
05/02/2011 21:58

According to the paper over 200 British account holders were contacted by a banker from the Girne branch. So you are not alone.

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
05/02/2011 22:05

Not alone maybe, but I wasn't contacted!

First I heard was a text from a friend in NC asking if I knew!!!

Was a bit of a shock at first but after a cuppa and a think it's not a total disaster (unless central bank go to then I really am in the brown stuff)

Have e-mailed Tyra but as yet no response. Hopefully she will see this thread (I know she browses here quite often) and let us all know what to do.

Again my thanks for any help.

John.

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
05/02/2011 22:37

wasn't Trevor from the BRS criticised for warning people about this possibility months ago?

newscoop


Joined: 23/12/2007
Posts: 2197

Message Posted:
05/02/2011 22:54

Trevor was indeed, he's probably feeling a bit better now.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
06/02/2011 07:00

Trevor did make a warning /www.cyprus44.com/forums/52762.asp



BUT we all have to remember that this Bank is still operational. No money has been lost and it is under the control of the Central Bank. The previous warning did not make this clear and that was what was criticised then.



Re15: Depositors were not officially told they were advised by a banker who had just lost their job to move their funds as they assumed the head office in Lefkoşa would be inconvenient for them.

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
06/02/2011 07:53

It was Tyra who told me the head office in lefkosia would be handling accoun ts. She tried to contact as many people as possible. She was only given 7 hours notice that the branch would close via a letter given to her on monday morning. What a way to treat your staff!

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
06/02/2011 15:51

Hi Deniz1, yes a terrible way to treat people.

She did have knowledge that the bank was in difficulty but didn't know what was going to happen. I apportion no blame to her at all. In fact she was one of the main factors in us choosing continental as she was so helpful.

So assuming the head office in Lefkosia is still operational and liquid I guess it means a trip out to close the accounts and start again or will the accounts still operate as normal (money paid in and bills paid out)??

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
06/02/2011 16:35

I think you would have to set up direct debits etc again as the branches dont seem to do these things jointly. I withdrew some money from another bank and they had to contact my original branch to check if it was ok and they are all the same bank!

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
06/02/2011 16:52

Lets hope that Tyra and all who worked so hard for their clients will get new jobs soon.

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
06/02/2011 17:34

Don't expect Tyra to respond to your email if you sent it to her at a Continental Bank email address as she is one of the poor unfortunates who have lost their jobs.

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
06/02/2011 21:20

Yes I guessed that may be the case. Will call them on Monday to find out exactly what the position is.

Will post up any info I get from them...



John.

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
06/02/2011 21:22

Tyra is unemployed at the moment she is taking a little time off and then will try to get something else but she is not very hopefull.

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
06/02/2011 21:57

I can't believe she will be unemployed for long. She would be an asset for any bank who wants the ex-pat business. If the continental bank had any brains at all they would have kept her on. She was a great help every time I went in. Just looking over the counter I could see at least three people doing next to nothing and she was always whizzing around trying to help someone.

My best regards and luck to her, I am sure she will find something soon and it will probably turn out to be better than working for Continental.

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
06/02/2011 22:08

Before we sold up in the TRNC, it was always tempting to sink a large amount of savings into a TRNC Bank and get 15 to 20% returns.



However,I never felt comfortable with it.....it just didn't seem sustainable....so we only deposited enough money to pay standing orders etc.



I know plenty of Brits will have made a good deal of money in the early days with high interest rates...and good luck to them....but I would be very wary about depositing too much money in TRNC banks these days.



I sincerely hope that the savers with Continental ARE protected, but maybe it should serve as a warning for those with savings in other banks.....particularly in these times of global financial insecurity ?

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
06/02/2011 22:26

All the banks on Central Bank list are fully protected by the Insurance Deposit Fund & that includes Continental. IMO Cronos, your comments are inappropriate & scaremongering.

I seem to recall that quite a few UK. Banks went tits up in 2008 & had to be bailed out. Northern Rock, Bradford & Bingley & HBOS to name but 3. How safe are UK. Banks after that fiasco, overseen by the FSA ?

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
06/02/2011 22:31

Scruff....I've just reread my post and can't honestly see any scaremongering....just my opinion and best wishes for those with Continental.



I wasn't making any comparison with UK banks, some of which did indeed go "tits up" to use your terminology.



However, I do know which country I'd rather be in when pursuing financial compensation from a collapsed bank !

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
06/02/2011 22:52

Cronos the Continental savers deposits are fully protected by the Central Bank which is backed by the TRNC government. Ones faith in the protection will depend on ones view of the TRNC government. See the Centeral Bank website http://www.kktcmb.trnc.net/ser/english/index_englishz.htm



In the bad days when six banks went down at the same time I am told (by people I trust and had moneys with the banks) that they as savers got all their funds back but slowly over a period of time.



All the other registered banks in the TRNC have a saver's compensation scheme full information about this can be found at http://www.ncmoneyguide.info (on the banks page in the guide you will need to logon to see this) but in a nut sell the first €20,000 per account is protected.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
06/02/2011 23:03

I'd totally agree Swany.

Continental's problems first started in late 2009 & were fully disclosed on the Central Bank website at the time along with those of Yesilada & also Deniz Bank.

I don't recall queues of people outside the Continental branch in Karakum. In fact there was never a difficulty in withdrawing funds from Continental & plenty of opportunity to do so right throughout 2010 & into 2011.

I do however, recall that there were queues outside Northern Rock's branches, such was the panic at the time.

andrew4232



Joined: 04/07/2009
Posts: 1543

Message Posted:
06/02/2011 23:55

if anyone has lost out it boils down to greed we all know the higher the rate the higher the risk what more do you need to say

Johnatcastle


Joined: 23/07/2009
Posts: 163

Message Posted:
07/02/2011 21:29

Ref message 32:

"if anyone has lost out it boils down to greed we all know the higher the rate the higher the risk what more do you need to say"



Please tell me you said that in jest!!!!



Putting money in a bank account amounts to greed????

Do you have a bank account? Are you greedy?

Bank accounts are pretty much necessary for everyday life, paying bills receiving cheques etc etc. To put a little in a saving account to help pay for those bills seems a reasonable and sensible idea to me but maybe I'm just greedy or stupid or both even.???

michelle3012


Joined: 07/11/2008
Posts: 578

Message Posted:
08/02/2011 16:29

Going back to the original post......does anyone have an email address for the branch in Lefkosia and a contact name ??????