BRUSSELS (Reuters) – Greece is unlikely to be able to pay what it owes and further debt restructuring is likely to be necessary, three EU officials said on Tuesday, a cost that would have to fall on the European Central Bank and euro zone governments.

The officials said that twice bailed-out Greece would be found to be way off track by EU and International Monetary Fund officials who have been assessing the country.

BRUSSELS, July 23 (Reuters) – Banks recapitalised as part of
Greece’s bailout may be forced to overhaul their management and
governance, the European Commission said, in response to
questions raised by Reuters about alleged malpractice at
Greece’s fourth-largest bank.

In a statement, the European Union’s executive arm said
Greek banks would face due-diligence audits and possible
management shake-ups in return for their share of billions of
euros from the region’s taxpayers and the International Monetary
Fund.

NICOSIA (Reuters) – Cyprus has drawn up plans to take in up to 200,000 refugees from the fighting in Syria, where the crackdown by government troops against opposition forces has intensified in recent weeks.

While the figures are a worst-case scenario, the number is equivalent to a quarter of the population of the Republic of Cyprus, a huge burden at a time of economic upheaval.

NICOSIA, July 6 (Reuters) – Cyprus blamed the decision to
restructure Greece’s debt for destroying its own economy on
Friday, and defended its right to seek financial assistance from
Russia, calling it a strategic partner of the European Union.

Euro zone leaders agreed in late 2011 to write down the
value of private-sector holdings of Greek government bonds to
try to cut Greece’s debt by around 100 billion euros – a process
known as PSI, or private sector involvement.

NICOSIA (Reuters) – Cyprus delivered a tough critique of the euro zone’s decision to restructure Greece’s private-sector debt on Friday, saying it had effectively thrown the Cypriot economy into turmoil and forced it into bailout of its own.

Euro zone leaders agreed in late 2011 to write down the value of private sector holdings of Greek government bonds to try to cut Greece’s debt by around 100 billion euros – a process known as PSI, or private sector involvement.

NICOSIA, Cyprus, July 6 (Reuters) – Cyprus should generate
foreign income from the export of natural gas by 2019, its
industry minister said on Friday, which is too far in the future
to help the island overcome financial problems caused by its
stricken banking sector.

The island’s commerce, industry and tourism minister said
the vast reserves of natural gas discovered in the waters
between Cyprus and Israel should be developed for domestic use
in 2017 and provide export revenue from 2019 or 2020.

NICOSIA, Cyprus (Reuters) – Cyprus’s president played up his close ties with Russia on Thursday, saying he was hoping to secure more financial support from Moscow as well as from the European Union as he bids to keep the island economy from collapsing.

Demetris Christofias, who was educated in Moscow and is the EU’s only communist head of state or government, dismissed suggestions that his tight relations with Russia could damage his ties within Europe and said it was perfectly normal for a country to look to all its allies for help.

BRUSSELS (Reuters) – They were bleary-eyed in their crumpled suits early on Friday morning, but euro zone negotiators were smiling after a hard-fought night of talks that struck a surprisingly far-reaching deal to prop up the euro.

An agreement to let the euro zone’s rescue funds directly recapitalize banks – something Spain has long held out for – went substantially beyond what almost all diplomats and finance officials expected going into the two-day summit.

BRUSSELS, June 29 (Reuters) – Under pressure to prevent a
catastrophic breakup of their single currency, euro zone leaders
agreed on Friday to let their rescue fund inject aid directly
into stricken banks from next year and intervene on bond markets
to support troubled member states.

They also pledged to create a single banking supervisor for
euro zone banks based around the European Central Bank in a
landmark first step towards a European banking union that could
help shore up struggling member Spain.

BRUSSELS, June 29 (Reuters) – Euro zone leaders agreed on
Friday to take emergency action to bring down Italy’s and
Spain’s spiralling borrowing costs and to create a single
supervisory body for euro zone banks by the end of this year, a
first step towards a European banking union.

Responding to pleas from Spanish and Italian leaders, a
midnight summit of the 17-nation currency area agreed that euro
area rescue funds could be used to stabilise bond markets
without forcing countries that comply with EU budget rules to
adopt extra austerity measures or economic reforms.