Posts by tag: economy

Archives April 20, 2013 posted by

Germany, IMF ‘used atomic bomb to shoot pigeon’


ONE OF Cyprus’ most senior civil servants yesterday likened his country’s treatment by Germany and the IMF to the shooting of a pigeon with an atomic bomb, saying they had destroyed an economic system that worked.

Christos Patsalides, permanent secretary of the Ministry of Finance, was speaking to a committee inquiry which launched a public hearing yesterday into the circumstances that led to the country’s economic meltdown.

He described the international lenders as “forces of occupation” that cared nothing for human rights.

Patsalides took part in the recent bailout negotiations between Cyprus and the European Union and International Monetary Fund.

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Archives April 19, 2013 posted by

CBC releases detailed PIMCO report on banks

THE Central Bank of Cyprus (CBC) on Friday released the detailed results of a due diligence of the banks that determined they will need around €8.9 billion in additional capital needs.

The capital needs were the result of a comprehensive analysis of the value of credit portfolios and foreclosed assets, and of the earnings capacity of the banks to absorb losses over the next three years under an adverse scenario.

According to this scenario, domestic banks will need some €8.2 billion while foreign lenders need €149 million.

Cooperative banks need €589 million, the due diligence that was carried out by investment experts PIMCO found.

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Archives April 14, 2013 posted by

Stop dreaming standing up


If you were the warehouse manager of a Saudi Arabian food importer, would you risk losing a hand if caught stealing food from warehouse stock to feed your starving family?

Fortunately, Cyprus courts do not cut off the hands of those caught stealing or stone to death those convicted of adultery. 

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Archives April 9, 2013 posted by

Fifteen arrests for match hooliganism

HOOLIGANISM reared its ugly head on Saturday, before, during and after the Omonia – APOEL match in Nicosia and the Anorthosis – AEK match in Larnaca as police arrested a total of 15 people.
Before the Omonia – APOEL game which was due to start at 4.30pm, trouble started while APOEL fans were making their way into the GSP Stadium, with one fan and three police officers being injured.
Police arrested one man to help their investigation into the incident. According to police, both sets of fans set off firecrackers and flares before and during the match. As the second half was about to get underway a section of fans from each team attempted to enter the moat which circles the stadium and throw objects at each other.

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Archives April 9, 2013 posted by

Our View: Cyprus has lost control of its tourism industry

ASIDE from having to sort out its position with relation to the deposit haircut and the issue of capital controls and how they might affect tourism in the near term, the industry needs to get its act together for the medium and long term if it is to contribute to the economy in any significant way.
Obviously tourism cannot save the economy as it once did. The experts have been quite clear on the differing circumstances with respect to the boom of the early eighties and the current climate where we, according to one  “are drowning in competition”.
What has not changed since the late eighties when Cyprus became an established destination, is the attitude towards tourists. It has been a constant, and not in a good way.

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Archives April 2, 2013 posted by

New era for Bank of Cyprus

THE measures to restructure and recapitalise the Bank of Cyprus (BoC) have solidified its position as the island’s biggest lender, marking a new era, it said yesterday.
“The restructuring and recapitalisation of BoC follows the decisions of the Eurogroup and aims at creating a well-capitalised, healthy and resilient bank, able to serve the needs of its customers and support the Cypriot economy,” BoC said in a statement.
The lender has significantly strengthened its capital position, minimised its exposure to the Greek economy and has access to European Central Bank liquidity, it said.
The bank was recapitalised by bailing-in depositors – a deposit-to-equity conversion – that ensured BoC now has a core tier 1 ratio of 9.0 per cent, the statement said.

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Archives March 28, 2013 posted by

Public looks to buying safes

COMPANIES selling safes have received an increase in calls asking for information, as people prepare to stash cash at home when the banks open.

They’re asking about the size of safes, the cost and the level of safety that each type of safe provides. 

“We have received about twice as many calls asking about our safes in the last few days. The callers want safety and ask about safes that cannot easily be broken into,” Thimios Asiotis said, the manager of sales at Total Guard Trading Ltd in Limassol. 

“Many Cypriots have lost their trust in banks and the banking system and I suspect they are looking for other ways to secure their money.”

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Archives March 28, 2013 posted by

Limits now in place for re-opening of banks – text of decree included


AFTER ALMOST two weeks with no banking system and limited ATM withdrawals, banks across the country will once again open their doors to the public today, introducing temporary capital controls for the first time in the eurozone.

Finance Minister Michalis Sarris last night signed into law a temporary decree capping cash withdrawals per person per bank per day at €300, effectively banning cheques and controlling cash outflows from the country, allowing only €1,000 per person per journey abroad. 

According to sources, the decree will apply across the banking system but allows a significant amount of discretion in its application. 

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Archives March 27, 2013 posted by

Nicosia municipality worried it won’t be able to function

THE BAILOUT deal and continued closure of the banks are putting a financial stranglehold on Nicosia municipality and are putting the smooth running of its services at risk, it said yesterday.
Nicosia Mayor, Constantinos Yiorkadjis called on the government to exclude municipality accounts from being hit by a levy on deposits.
“The majority of the municipality’s deposits are in the Popular Bank and Bank of Cyprus and it is a possibility, that despite our efforts, we will be unable to meet our responsibilities,” he said.

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