Michele's Feed
Apr 30, 2013

Cyprus bailout scrapes through island’s parliament

NICOSIA (Reuters) – Cyprus’s parliament approved an EU bailout on Tuesday which will force it to wind down its second-largest bank and impose heavy losses on uninsured depositors at another, conditions that have intensified calls from islanders to exit the euro.

With a razor-thin majority of just two votes, lawmakers approved terms accompanying 10 billion eurosin aid from the European Union and the International Monetary Fund (IMF).

Apr 30, 2013

Cyprus parliament decides on bailout, likely to vote yes

NICOSIA, April 30 (Reuters) – Cyprus’s parliament decides on
Tuesday whether to back a bailout imposed by its EU partners,
with approval likely from a thin majority against mounting calls
for the island to exit the euro.

Lawmakers were due to meet in an extraordinary session to
ratify the terms of the aid, which is conditional on Cyprus
winding down its second-largest bank and imposing heavy losses
on uninsured depositors in another. Voting was expected on
Tuesday afternoon.

Apr 30, 2013

Insight: Why did Cypriot banks keep buying Greek bonds?

NICOSIA (Reuters) – One day last October, a memory stick containing special software for deleting data was placed into a desktop computer at Bank of Cyprus.

Within minutes, 28,000 files were erased, according to investigators who had wanted to copy the data for an official report into the collapse of the Cypriot banking system.

Apr 30, 2013

Why did Cypriot banks keep buying Greek bonds?

NICOSIA, April 30 (Reuters) – One day last October, a memory
stick containing special software for deleting data was placed
into a desktop computer at Bank of Cyprus.

Within minutes, 28,000 files were erased, according to
investigators who had wanted to copy the data for an official
report into the collapse of the Cypriot banking system.

Apr 29, 2013

Cyprus parliament decides on bailout, thin majority to vote yes

NICOSIA (Reuters) – Cyprus’s parliament decides on Tuesday whether to back a bailout imposed by its EU partners, with approval likely from a thin majority against mounting calls for the island to exit the euro.

Lawmakers were due to meet in an extraordinary session at 4 p.m. (1300 GMT) to ratify the terms of the aid, which is conditional on Cyprus winding down its second-largest bank and slapping heavy losses on uninsured depositors in another.

Apr 23, 2013

Gold sale not a priority: Cyprus finance minister

NICOSIA (Reuters) – Cyprus is not giving priority to a sale of gold reserves under the international bailout agreed this month and is still exploring all options to meet its side of the deal, Finance Minister Harris Georgiades said in an interview.

Georgiades also said he anticipated currency controls, imposed after a chaotic bailout last month and which led to a lockdown of the banking system for 15 days would be eased in “days or weeks”.

Apr 19, 2013

After crippling bailout, Cyprus eyes energy development

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.

Apr 16, 2013

Cyprus central bank failed in its job, president tells ECB

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.

Apr 12, 2013

Cyprus says rise in bailout costs won’t affect banks or depositors

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.

Apr 11, 2013

ECB’s Draghi cautions over inquiry against Cyprus governor -letter

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
of Justice.

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.