Daily Archives: April 24, 2013

Archives April 24, 2013 posted by

Insurers downplay impact of haircut

 

INSURANCE companies yesterday sought to downplay the possible impact on policy holders as a result of the deposits haircut.

Under a decree issued by the Central Bank, insurance companies are no longer exempt from a deposit haircut at the Bank of Cyprus (BoC) and the old Laiki.

Authorities had initially excluded various entities from the write-down but were forced to rethink after it became obvious that it would increase the losses on depositors who must chip in to recapitalise stricken BoC.

Several previously exempted categories will now incur a 27.5 per cent loss on their deposits over €100,000. 

These include charities licensed by the finance ministry, and private schools registered with the education ministry.

Read More
Archives April 24, 2013 posted by

Loss of second committee member feeds into AKEL propaganda

ONLY ONE of the original three members of the committee set up to investigate the causes of the collapse of the economy is still in his place – Giorgos Pikis. The other two members of the line-up sworn in on April 2, have since resigned – Yiannakis Constantinides a week later for health reasons and Panayiotis Kallis on Monday because of what he described as a conflict of interest. His sons’ law office had taken legal action against the Bank of Cyprus that was related to the terms of reference of the investigative committee.

Read More
Archives April 24, 2013 posted by

Currency controls expected to be lifted ‘within weeks’

CURRENCY controls are expected to be lifted within the next few weeks, definitely within the next six months, finance minister Haris Georgiades has said.

Georgiades said he anticipated the 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”.

Asked during a Reuters interview published yesterday whether measures would be eased in two, or six months, Georgiades said: “Definitely not six months. I am optimistic we shall be able to proceed much sooner.” 

Capital controls were imposed at the end of March to prevent a flight of funds from a banking system flush with cash from Russian and European businesses, but also from many overseas Cypriots.

Read More
Archives April 24, 2013 posted by

Lawsuits against bail-in begin at Supreme Court

THE SUPREME Court yesterday began hearing 53 applications filed against last month’s Eurogroup decision to resolve Laiki Bank and force losses on uninsured depositors at the Bank of Cyprus. 

The applications were filed by depositors who can expect to lose the entirety of their deposits over €100,000 at Laiki and between 40 to 60 per cent (potentially higher) of uninsured deposits at the Bank of Cyprus (BOC). 

The eurozone finance ministers’ decision on March 25 provides for the restructuring of Cyprus’ two main banks, through the resolution of Laiki Bank and the recapitalisation of the Bank of Cyprus, resulting in a massive write off (haircut) of Cypriot and foreign bank deposits.

Read More
Archives April 24, 2013 posted by

EU Parliament likely to back forced losses on wealthy failed bank depositors

THE European Parliament is likely to back plans to impose losses on wealthier depositors in failed banks while shielding smaller savers, its lead negotiator on the rules said yesterday.

Talks are under way to finalise EU rules on crisis-hit banks following the Cyprus bailout, in which both large and small depositors were originally going to be hit before the plan was changed to charge only the former.

The European Parliament’s backing is needed for any proposals to become law.

Gunnar Hokmark, a Swedish conservative in the European Parliament, said most categories of deposits would not be protected under proposals likely to be agreed.

Read More
Archives April 24, 2013 posted by

Second member quits committee of inquiry

FORMER supreme court judge Panayiotis Kallis has resigned from the committee of inquiry tasked with probing the circumstances which led the economy and banking sector to the brink of collapse.

In a letter to the President and the justice minister, Kallis said he felt obliged to step down citing a possible conflict of interest with his sons’ law practice.

In the letter, Kallis explained that he could not in good conscience continue his work as his sons’ law firm has taken on clients challenging the ‘haircut’ on deposits at Laiki and Bank of Cyprus.

Read More
Archives April 24, 2013 posted by

Land Registry officials accused of corruption and bribery

A NUMBER of “corrupt” public officials at the Land Registry Department have been dipping their hands into the honey jar, Interior Minister Socrates Hasikos said yesterday, adding that the ministry will not hesitate to pursue criminal investigations wherever necessary.

According to Hasikos, seven land registry officials are under criminal or disciplinary investigation in relation to allegations of corruption, bribery, embroilment, violation of personal data laws and depriving the state of revenue.

“It appears there is corruption, without wishing to taint all land registry employees. On the other hand, there are these exceptions where civil servants appear to have been frequently putting their hands in the honey jar,” he said.

Read More
Archives April 24, 2013 posted by

Corruption in Cyprus growing says poll

CORRUPTION is Cyprus is growing, residents polled for years by an independent body dedicated to fighting it said yesterday.

Almost everyone or 91 per cent of those polled said last year that corruption was a major problem, up from 70 per cent in 2010, the survey by Transparency International Cyprus (TIC) said. TIC polled 953 people across Cyprus between September and December 2012, and across gender, age, employment and the unemployed.

Read More
Archives April 24, 2013 posted by

Ten years on mixed feelings about crossings

ON THE morning of April 23, 2003 Nicosia was inundated with thousands of people waiting in disbelief and anticipation as news spread the crossing point at the UN-controlled Ledra Palace Hotel was to be opened. 

It meant those on the island could venture to the ‘other’ side for the first time in three decades and for some, the first time in their lives.

Ten years on, the events of that day and the decisions surrounding it, can still be viewed as the most momentous and life changing for many Cypriots, since the division of the island.

But what was the feeling among those around Nicosia’s Ledra Street checkpoint yesterday? 

Read More
Archives April 24, 2013 posted by

Dog days for Cyprob negotiations in Nicosia

THE United Nations (UN) is very sympathetic towards the struggle the Cypriot people now face, UN Special Advisor on Cyprus Alexander Downer said yesterday after a meeting with President Nicos Anastasiades at the Presidential Palace.

Downer said he hopes to announce a dinner between President Anastasiades and Turkish Cypriot leader Dervis Eroglu after his meeting with the latter today. Downer will head to Greece on Thursday to meet Greek Foreign Minister Demetris Avramopoulos before travelling to Turkey on Monday to meet Turkish Foreign Minister Ahmet Davutoglu. “I will go into those meetings well armed,” Downer said. 

Read More

Archives Calendar

Archives List