Michele's Feed
Mar 30, 2013

Big depositors in Cyprus to lose far more than feared

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.

Mar 29, 2013

In Cyprus, the bank run that wasn’t

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.

Mar 29, 2013

Cyprus threat contained, no plan to leave euro

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.

Mar 29, 2013

Cyprus has no intention of leaving euro – president

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.

Mar 29, 2013

Patient Cypriots queue as banks reopen

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.

Mar 29, 2013

Cyprus bank controls to last a month, minister says

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.

Mar 27, 2013

Cyprus reopens banks, under strict restrictions

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
run.

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.

Mar 27, 2013

Tensions in Cyprus over bailout underscore pitfalls ahead

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.

Mar 26, 2013

Cyprus readies capital controls to avert bank run

NICOSIA, March 27 (Reuters) – Cyprus is expected to complete
capital control measures on Wednesday to prevent a run on the
banks by depositors anxious about their savings after the
country agreed a painful rescue package with international
lenders.

Cypriots have taken to the streets of Nicosia in their
thousands to protest at a bailout deal that they fear will push
their country into an economic slump and cost many their jobs.
European leaders said the deal averted a chaotic national
bankruptcy that might have forced Cyprus out of the euro.

Mar 25, 2013

Cyprus banks remain closed to avert run on deposits

NICOSIA, March 26 (Reuters) – The president of Cyprus
assured his people a bailout deal he struck with the European
Union was in their best interests, but banks will remain closed
until Thursday – and even then subject to capital controls to
prevent a run on deposits.

Returned from fraught negotiations in Brussels, President
Nicos Anastasiades said late on Monday the 10-billion euro ($13
billion) rescue plan agreed there in the early hours of the
morning was “painful” but essential to avoid economic meltdown.