Michele's Feed
Mar 21, 2013

EU gives Cyprus bailout ultimatum, risks euro exit

NICOSIA/FRANKFURT, March 21 (Reuters) – The European Union
gave Cyprus till Monday to raise the billions of euros it needs
to secure an international bailout or face a collapse of its
financial system that could push it out of the euro currency
zone.

In stark twin warnings on Thursday, the European Central
Bank said it would cut off liquidity to Cypriot banks and a
senior EU official made clear to Reuters that the bloc was ready
to see the bankrupt island banished from the euro in the belief
it could then contain damage to the wider European economy.

Mar 21, 2013

ECB gives Cyprus bailout ultimatum, banks face cutoff

NICOSIA/FRANKFURT, March 21 (Reuters) – The European Central
Bank gave Cyprus until Monday to raise billions of euros to
clinch an international bailout or face losing emergency funds
for its banks and inevitable collapse.

The ultimatum came as the island’s leaders struggled over a
“Plan B” to try to raise 5.8 billion euros demanded by the EU
under a 10 billion euro ($13 billion) rescue, after angry
lawmakers threw out a tax on deposits as “bank robbery”.

Mar 21, 2013

Europe sets Cyprus bailout deadline, banks face cutoff

NICOSIA/MOSCOW, March 21 (Reuters) – The European Central
Bank gave Cyprus until Monday to raise billions of euros to
clinch an international bailout or face losing emergency funds
for its crippled banks and inevitable collapse.

The warning came with the island’s leaders locked in talks
on a “Plan B” to raise 5.8 billion euros demanded by the EU
under a 10 billion euro ($13 billion) rescue, after angry
lawmakers threw out a tax on deposits as “bank robbery”.

Mar 20, 2013

Cyprus scrambles to avert meltdown, EU threatens cutoff

NICOSIA, March 21 (Reuters) – Cyprus considered
nationalising pension funds and ordered banks to stay shut till
next week to avert financial chaos after it rejected the terms
of a European Union bailout and turned to Russia for aid.

Crisis talks among the political leadership in Nicosia are
set to resume on Thursday after late-night meetings to discuss a
“Plan B” broke up on Wednesday without result.

Mar 20, 2013

Cyprus seeks Russian rescue, EU threatens cutoff

NICOSIA/MOSCOW, March 20 (Reuters) – Cyprus pleaded for a
new loan from Russia on Wednesday to avert a financial meltdown,
after the island’s parliament rejected the terms of a bailout
from the EU, raising the risk of default and a bank crash.

Cypriot Finance Minister Michael Sarris said he had not
reached a deal at a first meeting with his Russian counterpart
Anton Siluanov in Moscow, but talks there would continue.

Mar 20, 2013

Cyprus throws bailout into disarray, seeks Russian help

NICOSIA, March 20 (Reuters) – Cypriot leaders held crisis
talks on Wednesday to avert financial meltdown after rejecting
the terms of a European Union bailout and throwing efforts to
rescue the latest casualty of the euro zone debt crisis into
disarray.

The rejection of an unprecedented levy on bank deposits, a
condition of a 10 billion euro ($12.89 billion) EU bailout, cast
the 17-nation currency bloc into uncharted waters after Greece,
Portugal, Ireland, Spain and Italy all accepted biting austerity
measures over the last three years to secure European aid.

Mar 20, 2013

Cypriot banks on brink in Icelandic flashback

DUBLIN/NICOSIA, March 20 (Reuters) – A small island on the
edge of Europe teetering under the weight of its bust banks.
Sound familiar?

Like Iceland and Ireland before it, Cyprus is battling to
prevent an outsized and overextended banking sector from
dragging the country into the ground.

Mar 19, 2013

Cyprus lawmakers reject bank tax; bailout in disarray

NICOSIA, March 19 (Reuters) – Cyprus’s parliament
overwhelmingly rejected a proposed levy on bank deposits as a
condition for a European bailout on Tuesday, throwing euro zone
efforts to rescue the latest casualty of the currency area’s
debt crisis into disarray.

The vote by the small state’s legislature was a stunning
setback for the 17-nation euro zone, after lawmakers in Greece,
Portugal, Ireland, Spain and Italy had repeatedly accepted
unpopular austerity measures over the last three years to secure
European aid.

Mar 19, 2013

Cyprus aims to let small savers off bank tax; veto still likely

NICOSIA, March 19 (Reuters) – Cyprus’s government proposed
to spare small savers from a divisive levy on bank deposits but
said it expected parliament to reject the measure, needed to
secure an international rescue and avoid a default that would
shake the euro zone.

Parliament began debating the hit on deposits and unless it
votes for it EU countries say they will withhold a bailout,
plunging one of the smallest European states closer to financial
oblivion.

Mar 19, 2013

Cyprus aims to let small savers out of deposit tax; veto still likely

NICOSIA, March 19 (Reuters) – Cyprus’s government proposed
on Tuesday to spare small savers from a divisive tax on bank
deposits in a last-minute attempt to win parliamentary backing
for an international bailout and avoid default and a banking
collapse.

Lawmakers still seem likely to reject the unprecedented
levy, a government spokesman said, plunging one of the smallest
European states closer to financial oblivion with potentially
severe consequences for the rest of the troubled euro zone.