Michele's Feed
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.

Mar 25, 2013

Last-ditch Cyprus deal brings little relief, much uncertainty

NICOSIA, March 25 (Reuters) – At a Cypriot pawnbroker, one
of the few growth industries in Europe’s debt-ridden south,
someone had vented the anger of an island: “Thieves” was
scrawled across the window, in bright red paint.

The European Union might claim to have come to the rescue of
Cyprus with a last-ditch deal to bail it out, brokered in
frantic overnight talks in Brussels, but gratitude was in short
supply in Nicosia on Monday.

Mar 25, 2013

Cyprus reaches last-minute deal on 10 billion euro bailout

BRUSSELS/NICOSIA, March 25 (Reuters) – Cyprus clinched a
last-ditch deal with international lenders to shut down its
second-largest bank and inflict heavy losses on uninsured
depositors, including wealthy Russians, in return for a 10
billion euro ($13 billion) bailout.

The agreement came hours before a deadline to avert a
collapse of the banking system in fraught negotiations between
President Nicos Anastasiades and heads of the European Union,
the European Central Bank and the International Monetary Fund.

Mar 24, 2013

Cyprus seeks 11th-hour deal to avert financial collapse

NICOSIA, March 24 (Reuters) – Cypriot President Nicos
Anastasiades flies to Brussels on Sunday to seek an 11th-hour
reprieve from financial meltdown, with a bailout from the
European Union and the island’s place in Europe’s single
currency bloc hanging in the balance.

Facing a Monday deadline to avert a collapse of the Cypriot
banking system, talks in Nicosia to seal a bailout from the EU
and International Monetary Fund broke up late on Saturday
without result.

Mar 24, 2013

Cyprus weighs big bank levy; bailout goes down to wire

NICOSIA (Reuters) – Cyprus conceded on Saturday to a one-off levy on deposits over 100,000 euros in a dramatic U-turn as it raced to satisfy European partners and seal an 11th-hour bailout deal to avert financial collapse.

The island’s finance minister, Michael Sarris, reported “significant progress” in talks with international lenders, with the clock running down to end-Monday deadline for Cyprus to clinch a bailout deal with the EU or lose emergency funding for its stricken banks and risk tumbling out of the euro zone.

Mar 23, 2013

Cyprus bailout bid goes down to the wire

NICOSIA, March 23 (Reuters) – Cyprus’s bid to avert
financial collapse will go down to the wire after the island
said it would hold a crucial sitting of parliament only after
finance ministers of the 17-nation euro zone meet on Sunday.

Cyprus faces a Monday deadline to clinch a 10 billion euro
($13 billion) bailout from the European Union or the European
Central Bank sauys it will cut off emergency funding to the
country’s stricken banks, spelling certain collapse and
potentially pushing the island out of Europe’s single currency.

Mar 22, 2013

Cyprus closes in on EU bailout, U-turn on levy

NICOSIA, March 23 (Reuters) – Cyprus is expected to make a
dramatic U-turn on Saturday to avert the imminent threat of
financial meltdown, having signalled it is willing to tax big
savers in its stricken banks to clinch a bailout from the
European Union.

The island’s partners in the 17-nation euro zone scheduled a
meeting for Sunday in Brussels, in a strong sign they believe a
solution is near.

Mar 22, 2013

Cyprus eyes bailout deal, U-turn on levy

NICOSIA, March 22 (Reuters) – Cyprus was just hours away
from a deal on Friday to raise billions of euros and unlock a
bailout from the European Union that could avert financial
meltdown and exit from the euro, its ruling party said.

The remarks came after Moscow had rebuffed requests from
Nicosia for assistance to save Cypriot banks in which Russians
have billions at risk and at least one euro zone minister,
Finland’s Alexander Stubb, said an EU accord would be reached.