Michele's Feed
May 15, 2013

Insight: Bank documents portray Cyprus as Russia’s favorite haven

NICOSIA (Reuters) – When the Cyprus bank run began earlier this year, Russians set much of the pace. Documents seen by Reuters show that as the Mediterranean island headed towards financial meltdown in March, most notable among companies transferring money from the country’s two main banks were Russians and East Europeans.

At least 3.6 billion euros ($4.67 billion) was removed in two weeks by big depositors, according to the documents. Though many companies listed initially appear obscure, a Reuters analysis shows a significant proportion are vehicles for foreign investors more at home in Moscow or Kiev than Nicosia.

May 15, 2013

Bank documents portray Cyprus as Russia’s favourite haven

NICOSIA, May 15 (Reuters) – When the Cyprus bank run began
earlier this year, Russians set much of the pace. Documents seen
by Reuters show that as the Mediterranean island headed towards
financial meltdown in March, most notable among companies
transferring money from the country’s two main banks were
Russians and East Europeans.

At least 3.6 billion euros ($4.67 billion) was removed in
two weeks by big depositors, according to the documents. Though
many companies listed initially appear obscure, a Reuters
analysis shows a significant proportion are vehicles for foreign
investors more at home in Moscow or Kiev than Nicosia.

May 14, 2013

Cyprus banks look beyond bailout to gas opportunities: industry head

NICOSIA (Reuters) – Cyprus must swiftly recapitalize its banks following the island’s bailout so they can begin lending again, the head of its banking association said, adding that offshore gas could be the economy’s new engine.

Under the 10 billon euro international aid package agreed in March, Cyprus must close one bank, Popular CPBC.CY, and impose painful losses on deposits of more than 100,000 euros held at the euro zone state’s biggest lender, Bank of Cyprus BOC.CY.

Apr 30, 2013

Cyprus bailout scrapes through island’s parliament

NICOSIA (Reuters) – Cyprus’s parliament approved an EU bailout on Tuesday which will force it to wind down its second-largest bank and impose heavy losses on uninsured depositors at another, conditions that have intensified calls from islanders to exit the euro.

With a razor-thin majority of just two votes, lawmakers approved terms accompanying 10 billion eurosin aid from the European Union and the International Monetary Fund (IMF).

Apr 30, 2013

Cyprus parliament decides on bailout, likely to vote yes

NICOSIA, April 30 (Reuters) – Cyprus’s parliament decides on
Tuesday whether to back a bailout imposed by its EU partners,
with approval likely from a thin majority against mounting calls
for the island to exit the euro.

Lawmakers were due to meet in an extraordinary session to
ratify the terms of the aid, which is conditional on Cyprus
winding down its second-largest bank and imposing heavy losses
on uninsured depositors in another. Voting was expected on
Tuesday afternoon.

Apr 30, 2013

Insight: Why did Cypriot banks keep buying Greek bonds?

NICOSIA (Reuters) – One day last October, a memory stick containing special software for deleting data was placed into a desktop computer at Bank of Cyprus.

Within minutes, 28,000 files were erased, according to investigators who had wanted to copy the data for an official report into the collapse of the Cypriot banking system.

Apr 30, 2013

Why did Cypriot banks keep buying Greek bonds?

NICOSIA, April 30 (Reuters) – One day last October, a memory
stick containing special software for deleting data was placed
into a desktop computer at Bank of Cyprus.

Within minutes, 28,000 files were erased, according to
investigators who had wanted to copy the data for an official
report into the collapse of the Cypriot banking system.

Apr 29, 2013

Cyprus parliament decides on bailout, thin majority to vote yes

NICOSIA (Reuters) – Cyprus’s parliament decides on Tuesday whether to back a bailout imposed by its EU partners, with approval likely from a thin majority against mounting calls for the island to exit the euro.

Lawmakers were due to meet in an extraordinary session at 4 p.m. (1300 GMT) to ratify the terms of the aid, which is conditional on Cyprus winding down its second-largest bank and slapping heavy losses on uninsured depositors in another.

Apr 23, 2013

Gold sale not a priority: Cyprus finance minister

NICOSIA (Reuters) – Cyprus is not giving priority to a sale of gold reserves under the international bailout agreed this month and is still exploring all options to meet its side of the deal, Finance Minister Harris Georgiades said in an interview.

Georgiades also said he anticipated currency controls, imposed after a chaotic bailout last month and which led to a lockdown of the banking system for 15 days would be eased in “days or weeks”.

Apr 19, 2013

After crippling bailout, Cyprus eyes energy development

NICOSIA (Reuters) – Cyprus said on Friday it would seek further diversity to its economy and focus on developing its offshore energy reserves as it struggles to rally from the austerity inflicted by an international financial bailout.

The Mediterranean island faces the prospect of a double-digit contraction in growth over the next two years after bank savers were forced to pay for the recapitalization of its two largest banks, heavily exposed to debt-crippled Greece.