NICOSIA (Reuters) – Cyprus should brace itself for an extended period of difficulty in the near term after sealing a bailout deal forcing it to forgo much of its banking sector, its former finance minister said.
Michael Sarris, who stepped down as finance minister just five weeks into the job on Tuesday, said in an interview that Cyprus had made mistakes, but said lenders and European Union partners had treated Cyprus unfairly.
NICOSIA, April 2 (Reuters) – Cypriot Finance Minister
Michael Sarris quit on Tuesday after concluding talks with
foreign lenders on a bailout that forced the island to slap
unprecedented losses on bank depositors in return for aid.
The news came after Cyprus announced a partial relaxation of
currency controls, raising the ceiling for financial
transactions that do not require central bank approval, but
keeping most other restrictions in place.
NICOSIA (Reuters) – Big depositors in Cyprus’s largest bank stand to lose far more than initially feared under a European Union rescue package to save the island from bankruptcy, a source with direct knowledge of the terms said on Friday.
Under conditions expected to be announced on Saturday, depositors in Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros, the source told Reuters, while the rest of their deposits may never be paid back.
NICOSIA (Reuters) – In the end it was hardly even a stroll, let alone the widely predicted run on the banks of Cyprus.
Commentators had been confident that as soon as the banks reopened on Thursday at noon after Cyprus signed a rescue deal with the European Union to stave off national bankruptcy, there would be scenes of chaos.
NICOSIA (Reuters) – The president of Cyprus said on Friday the risk of bankruptcy had been contained and the country had no intention of leaving the euro, in a speech laden with criticism of Europe’s currency union for “experimenting” with the island’s fate.
Conservative leader Nicos Anastasiades spoke a day after banks reopened following an almost two-week shutdown to avert a run on deposits by worried Cypriots and wealthy foreign depositors as the country raced to clinch a rescue package from the European Union.
NICOSIA, March 29 (Reuters) – Cyprus has “contained” the
risk of bankruptcy in the wake of a tough rescue package with
the European Union and has no intention of leaving Europe’s
single currency, the island’s president said on Friday.
Conservative leader Nicos Anastasiades assured Cypriots and
wealthy foreign depositors that restrictions on bank
transactions, imposed this week, would gradually be lifted, but
gave no time frame.
NICOSIA (Reuters) – Cypriots queued at banks as they reopened on Thursday under tight controls imposed on transactions, but there was no sign of a run on deposits that had been feared after the government was forced to accept a stringent EU rescue package.
Banks were shut almost two weeks ago as the government negotiated a 10 billion euro (9 billion pounds) international bailout to avert a national bankruptcy, the first in Europe’s single currency zone to impose losses on bank depositors.
NICOSIA (Reuters) – Cyprus conceded on Thursday that tight capital controls would remain in force longer than expected as the island’s banks reopened for the first time after the government was forced to accept a tough EU rescue package to avoid bankruptcy.
Cypriots lined up calmly to withdraw limited amounts of cash, but there was no sign of a run on deposits, as had been feared.
NICOSIA, March 28 (Reuters) – Cypriots are expected to
descend in their thousands on Thursday on banks, which reopen
with tight controls imposed on transactions to prevent fleeing
depositors from cleaning out the vaults in a catastrophic bank
The east Mediterranean island fears a stampede at banks
almost two weeks after they were shut by the government as it
negotiated a 10 billion euro ($12.78 billion) bailout package
with the European Union to escape financial meltdown.
NICOSIA (Reuters) – The ink is barely dry on a deal struck in Brussels to save Cyprus from bankruptcy, but rising tension between the island’s conservative president and the Communist-appointed governor of the central bank foreshadow difficulties ahead.
Thinly veiled disdain for governor Panicos Demetriades expressed by officials close to President Nicos Anastasiades has reinforced the perception of a Cypriot leadership reeling under the backlash against an unpopular, last-minute accord hammered out in fraught negotiations in Brussels.