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.
NICOSIA, April 16 (Reuters) – The governor of Cyprus’s
central bank failed to regulate its now-crippled banking system
effectively, the island’s president Nicos Anastasiades said in a
letter to ECB chief Mario Draghi.
Deepening a row between the government and central bank,
Anastasiades attacked Panicos Demetriades, who was appointed as
governor last year, for what he said was sustaining an insolvent
bank using a European Central Bank cash lifeline.
NICOSIA (Reuters) – Cyprus said on Friday that an increase in the cost of its total bailout package to about 23 billion euros would not lead to more money being taken from depositors in the country’s banks.
Cyprus has been thrown into economic turmoil. The terms of its bailout have forced massive losses on depositors at two of its biggest banks – one of which will be wound down altogether. The government is also piling pressure on the central bank governor to quit.
NICOSIA, April 11 (Reuters) – ECB President Mario Draghi has
cautioned Cyprus that an investigation against the governor of
its central bank, a move that could lead to his dismissal, may
violate EU law and could land the island in the European Court
Cyprus’s parliament said on Wednesday it would launch an
inquiry into whether Governor Panicos Demetriades, a member of
the Governing Council of the European Central Bank, withheld
information from legislators in an investigation into the
island’s now-collapsed banking system.
NICOSIA, April 5 (Reuters) – Regulators asked Cyprus’s
largest bank to provide information about its ultimately
disastrous holdings of Greek debt as long as three years ago but
got no immediate response and did not follow up, an external
A report seen by Reuters said that the recent investigation
was hampered by “unnecessary delays” in getting documentation
from commercial Bank of Cyprus – one of the banks at
the centre of Cyprus’s international bailout – and that some
computers at the bank may have been wiped.
NICOSIA, April 4 (Reuters) – Public shock in Cyprus about
the tough terms of an international bailout is turning into
anger as millions of euros remain locked in the country’s banks.
Cypriots were stunned by last month’s collapse of its
second-biggest lender, Popular Bank, and a decision to slap
losses on large deposits at the Bank of Cyprus in return for
financial aid from the European Union and IMF.
NICOSIA (Reuters) – Supreme Court judges will launch an investigation on Thursday into almost a decade of financial profligacy which brought Cyprus to its knees last month, with a mandate from the head of state to give his own affairs special attention.
Retired judges Georghios Pikis, Panayiotis Kallis and Yiannakis Constantinides were appointed this week by newly elected President Nicos Anastasiades; he has asked them to investigate who might bear “criminal, civil and political” responsibility for events from 2006 which ultimately forced the closure of the island’s second largest bank and imposed big losses on depositors in its largest in return for a bailout.
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.