Michele's Feed
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.

Feb 24, 2013

After election win, Anastasiades faces Cyprus bailout quagmire

NICOSIA, Feb 25 (Reuters) – Cypriot president-elect Nicos
Anastasiades faces weeks of difficult talks with foreign lenders
on a financial rescue for the island nation after sweeping to a
resounding victory in a run-off election on Sunday.

Eight months of inconclusive talks on a bailout package have
turned tiny Cyprus into a big headache for the euro zone,
triggering fears of a financial collapse that reignites the
bloc’s debt crisis.

Feb 24, 2013

Cypriot presidential victor turns “Nasty” to “Nice”

NICOSIA (Reuters) – Conservative chief Nicos Anastasiades’s victory in Cyprus’s presidential elections on Sunday marks a stunning comeback for a politician whose career was almost destroyed by a political gamble in 2004.

A sharp and rousing public speaker who pulls no punches, Anastasiades, 66, comfortably beat his leftist rival Stavros Malas by taking 57.5 percent in the run-off vote.

Feb 24, 2013

Cyprus votes for president as clock ticks on bailout deal

NICOSIA (Reuters) – Cypriots vote in a runoff on Sunday to elect a president who must clinch a bailout deal so the island nation can avoid a financial meltdown that would revive the euro zone crisis.

Conservative leader Nicos Anastasiades, who favors hammering out a quick deal with foreign lenders, is favored to win against Communist-backed rival Stavros Malas, who is more wary of the austerity terms accompanying any rescue.