Michele's Feed
Mar 16, 2013

Savers bear brunt of unprecedented Cyprus bailout

BRUSSELS, March 16 (Reuters) – The euro zone struck a deal
on Saturday to hand Cyprus a bailout worth 10 billion euros ($13
billion), but demanded depositors in its banks forfeit some
money to stave off bankruptcy despite the risks of a wider run
on savings.

The eastern Mediterranean island becomes the fifth country
after Greece, Ireland, Portugal and Spain to turn to the euro
zone for financial help during the region’s debt crisis.

Mar 16, 2013

Cypriots stunned by forced savings cuts

NICOSIA (Reuters) – Frustration over a delayed bailout turned to incredulity and anger in Cyprus on Saturday as islanders woke up to news that savers would be footing part of the bill to avert national bankruptcy.

In a radical departure from previous euro zone rescues for Greece, Ireland, Portugal and Spain, finance ministers struck a deal to lend the indebted island 10 billion euros ($13 billion). But in return, depositors would have to forfeit up to 10 percent of their savings.

Mar 14, 2013

ECB’s Demetriades: Irish bond auction an important step

NICOSIA, March 14 (Reuters) – Ireland’s issuance of its
first long-term bond since being bailed out is an important step
towards qualifying for help from the ECB’s bond-buying
programme, European Central Bank Governing Council member
Panicos Demetriades said.

In an interview with Reuters, conducted on Wednesday, the
Cyprus central bank governor said euro zone economic recovery
was holding to its projected path and the Italian election
stalemate had not increased risks to growth.

Mar 11, 2013

Cyprus mulls tax hike, Athens plays down talk of help for banks

NICOSIA, March 11 (Reuters) – Cyprus is inching towards
raising corporate tax to stave off IMF pressure for investors to
take losses on bank deposits as it seeks to secure a bailout, a
source close to the talks said on Monday.

International lenders, who resumed talks with Cyprus last
week, are urging Cyprus to lifts its corporate tax rate from 10
percent, and introduce a capital gains levy, to ensure it can
repay an international bailout which it requested last year.

Mar 11, 2013

Cyprus mulls tax increase as lesser of two evils

NICOSIA, March 11 (Reuters) – Cyprus is inching towards
hiking its corporate tax rate in an attempt to stave off IMF
pressure for investors to take losses on bank deposits to pay
for a bailout that would avert the sovereign default.

Corporate tax, now at a nominal 10 percent and among the
lowest in the European Union, was previously considered a no-go
area for authorities.

Mar 6, 2013

Cyprus Finance Minister says bank deposits will be protected

NICOSIA, March 6 (Reuters) – Cyprus insisted on Wednesday
that people holding money in its banks – many of them Russian
and British – must not take a hit in efforts to repair the
island’s shattered finances.

Attempts by Cyprus to secure aid have been complicated by
concerns about how the island could afford to pay back a debt
burden which could potentially reach 17 billion euros ($22
billion) – almost the size of its economy, one of the euro
zone’s smallest.

Mar 1, 2013

Cyprus dismisses bank deposit haircut talk as “stupid”

NICOSIA, March 1 (Reuters) – Cyprus’s new finance minister
on Friday ruled out a haircut, or imposed losses, on bank
deposits to ease a financial bailout from international lenders,
now stalled amid worries about debt sustainability.

“Really and categorically – and this doesn’t only apply in
the case of Cyprus but for the world over and the euro zone -
there really couldn’t be a more stupid idea,” Michael Sarris,
who took over his post on Friday, told reporters.

Feb 28, 2013

Cyprus president says committed to stability, swift bailout

NICOSIA (Reuters) – Cyprus’s new President Nicos Anastasiades vowed on Thursday to work for a swift conclusion of a bailout for the cash-starved island, ruling out debt or deposit “haircuts” for the Mediterranean nation threatened with a financial meltdown.

Economic turmoil engulfing Cyprus, one of the euro zone’s smallest economies, could test the European Union’s mettle in a crisis threatening to spill beyond the tiny island’s shores and unravel nascent recovery in the bloc.

Feb 25, 2013

After election win, Anastasiades tackles Cyprus bailout

NICOSIA (Reuters) – Cypriot president-elect Nicos Anastasiades, armed with a clear mandate from voters to protect the island from insolvency, said on Monday he was committed to reforms in return for a bailout.

The Conservative Anastasiades won decisive backing in a presidential election on Sunday for an aggressive approach to resolving the island’s worst financial crisis in four decades.

Feb 25, 2013

Euro zone at odds over “bail-in” of Cypriot depositors

BRUSSELS/NICOSIA, Feb 25 (Reuters) – European policymakers
are split over how to handle a bailout of Cyprus, with Germany
and some other countries pushing for bank depositors to bear
part of the cost and many other member states worried such a
move will cause a bank run.

Euro zone officials say momentum has built in recent days
behind the idea of “bailing-in” Cypriot bank shareholders and
depositors, although the specifics of how such an operation
would be carried out have not been pinned down.