Daily Archives: March 17, 2013

Archives March 17, 2013 posted by

Vote on controversial deposit haircut postponed

PARLIAMENT on Sunday postponed an emergency session to discuss a levy on bank savings imposed to partially fund an international bailout needed to stave off bankruptcy.

All meetings were postponed until Monday, the Cyprus News Agency reported. Earlier, President Nicos Anastasiades postponed an informal meeting of lawmakers called for Sunday morning.

Several parties in the 56-member chamber, where no party has an absolute majority, were meeting on Sunday morning to formulate positions over the bank levy. Three parties have already said they will not back the plan.

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Kyveli Dallas please contact…

Kyveli Dallas please contact Joanna Gavriel Arthur. Visiting Cyprus in April. Hope to see you and Marcia. Lost your phone#. Write 12508 Hemm Pl., Bowie, MD 20716 US, telephone 301-262-0419, or contact my sister in Ay. Omologitae.

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Cyprus left reeling from haircut

 

THE DECISION to impose an unprecedented all-out haircut on Cypriot deposits was a painful one, but it was the only option to avoid bankruptcy of the state, said President Nicos Anastasiades yesterday.  

The statement was made after Cyprus woke up to a horrific hangover yesterday morning when it transpired after a marathon ten-hour Eurogroup session that a haircut on all bank deposits would be imposed in Cyprus, along with an increase in corporate tax and a doubling of the tax on interest earned from savings.

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Our View: The ‘rescue package’ designed to destroy the economy

 

EVEN though the haircut of bank deposits had been on the agenda of the EU for more than a month now, featuring in Commission memos and being openly discussed by European politicians, most of whom, refused to rule it out, few people thought the Eurogroup would go ahead with it. It was an idle threat, to force Cyprus privatise SGOs and increase the corporate tax, was the prevailing view. 

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Tales from the Coffeeshop: Nik left carrying the can for the village idiot

 

THREE weeks ago he was on the podium at the Eleftheria Stadium being applauded and cheered by thousands of flag-waving supporters for his election victory. Today he is the most unpopular man in Kyproulla for agreeing to the haircut of deposits, abused and reviled even by people who only have overdraft accounts and lost nothing.

Poor old Nik inherited the scorched earth left behind by the village idiot and will now carry the can for agreeing to a bailout deal, which is primarily designed to appeal to German voters rather than to help Kyproulla in her hour of need. He is now being accused of ‘unconditional surrender’ to the troikans and of betraying his voters.

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Money will be cut from accounts by Tuesday morning

 

THE ONE-OFF levy on bank deposits agreed between Nicosia and international creditors will impact all Cypriot account holders.

In addition to Cypriot commercial and co-operative banks, Barclays, Russian Commercial Bank and Societe Generale, among others, would be affected.

“As we understand it, anything with credit will be subject to the levy, be it a deposit or current account,” bank sources said.

The Cyprus deal means the country’s savers, almost half of whom are believed to be non-resident Russians, are asked to pay up to 10 per cent of their deposits to raise some €5.8 billion for the government.

International lenders will put up around €10 billion to help the island pay back its debt.

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Troika are ‘vindictive and neo-colonial’

 

PARTIES reacted angrily to the Eurogroup decision, with communist AKEL saying it was contemplating proposing Cyprus’ exit from the common currency, the euro.

However, Communications Minister Tasos Mitsopoulos warned that the alternative was the collapse of the banking sector and bankruptcy.

AKEL leader Andros Kyprianou described Cyprus’ treatment by the troika as “vindictive and neo-colonial,” adding that his party would discuss proposing the island’s exit from the eurozone.

“They are attempting to impose their political options on Cyprus, leading out country and people to conditions that are similar to those in other countries of the European south,” Kyprianou said.

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Caught between a rock and a hard place

 

ANALYSTS yesterday echoed the public’s discontent in denouncing the agreement struck in Brussels, though some acknowledged that the government was negotiating with a gun to its head.

“I think it was the wrong decision by the Eurogroup, but also a mistake on the part of the government to accept it,” said Theodore Panayotou, director of the Cyprus International Institute of Management. 

“Deposits are sacred…people put their money in banks for safekeeping. After what just happened, who is going to have any confidence left in the banks?” he remarked.

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‘They took our money while we were sleeping’ WITH VIDEO

 

THE AIR of disappointment and rage on Ledra Street yesterday morning was almost tangible with groups of middle-aged men gathering to express their disbelief and fury about the haircut on deposits. 

Social websites and phones were awash with debate and complaints about where this island is headed, whose fault it was and where do we go from here?  

As the Cyprus Mail approached several men gathered by a bench, another passed by and could audibly be heard saying ‘take it all out, even the provident fund’. 

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Cypriot banks to transfer Greek units to Greek owners

 

CYPRIOT banks will transfer their Greek units to Greek owners as part of the island’s international bailout agreed earlier yesterday, two government and banking sources in Athens told Reuters.

Cypriot banks account for the bulk of the €0 billion that Nicosia will get from eurozone countries to stave off bankruptcy. In sharp contrast with previous bailouts for other indebted nations, the rescue package is co-funded by levies on bank deposits.

The units of Cypriot banks in Greece, which account for about a tenth of Greece’s banking market, were specifically excluded from the levy after a deal to transfer them to Greek lenders, one senior banking source and one senior finance ministry official said.

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