Posts by tag: eurozone

Archives March 29, 2013 posted by

Bildt: economic problems should have been dealt with earlier

SWEDISH FOREIGN Minister Carl Bildt remains a steadfast supporter of Swedish entry to the euro, arguing that the “obvious” mistake made in Cyprus was not dealing with the country’s financial problems earlier. 

Speaking after a meeting with his Cypriot counterpart Ioannis Kasoulides in Nicosia yesterday, Bildt said: “The big question I have is why wasn’t the issue dealt with earlier, because (the financial system) was clearly in an unsustainable situation which should have been dealt with earlier.” 

He added: “It was left to be unsustainable for quite some time.”

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Archives March 29, 2013 posted by

Pissarides: troika’s decisions baffling

THE HANDLING of the Cyprus economic crisis by the Eurogroup of finance ministers highlighted that not all nations are equal in the eurozone where large nations’ interests come first, said Nobel economics prize winner Christopher Pissarides. 

In an opinion piece published in the Financial Times, Pissarides argued that the troika’s decisions on Cyprus were “baffling”, and made a “mockery” of the vision of the founding fathers of the single European currency.  

The head of the advisory body to the president, the national economic council, noted that the troika believed Cyprus’ banking sector to be unsustainable because deposits were about eight times the gross national product. 

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Archives March 27, 2013 posted by

News in Brief

CSE remains closed

THE Cyprus Stock Exchange (CSE) yesterday announced the continuation of last week’s trading suspension in an attempt to ensure a proper functioning of the stock market and to protect investors, it said.
These decisions were made because banks remain closed and therefore will not be able to carry out transactions to do with the settlement of securities, because of the economic developments which effect the banks whose securities are quoted on the stock exchange and to avoid any potential additional risk to the system as the stock exchange will not be able to check the credit limits of members during trading sessions.

Petrol sales down

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Archives March 26, 2013 posted by

From solidarity to bile and vitriol

How the world viewed the deal that will finally lead to Cyprus’ bailout

 

“We got what we always wanted, a bail-in that shrinks the over-sized banking sector in Cyprus”

German Finance Minister Wolfgang Schaeuble

 

“I am confident that the programme will work, but let’s be honest. At this moment, we cannot say exactly what the impact is going to be”

European Commission President Jose Manuel Barroso

 

“They gave me strength during last night’s difficult struggle, to get the best possible result for Cyprus”

President Nicos Anastasiades on Twitter thanking the people of Cyprus for their messages of solidarity

 

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Archives March 25, 2013 posted by

Turkey and Israel change the gas game

THE US-brokered Israeli apology to Turkey has opened the door to the resumption of close relations between the two former allies and raised the prospect of energy collaboration in the eastern Mediterranean, raising questions as to the potential impact on Cyprus’ own gas plans.  
Last Friday, Israeli Prime Minister Benjamin Netanyahu expressed Israel’s apology to Turkish Prime Minister Tayyip Erdogan “for any mistakes that might have led to the loss of life or injury” during the raid on the Turkish ship Mavi Marmara, which tried to reach Gaza in 2010, resulting in the death of nine Turkish activists.
The next day, Erdogan said Israel’s apology highlighted Turkey’s growing regional clout.

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Archives March 24, 2013 posted by

‘Complications with Piraeus deal for Cypriot units’

UPDATED 20:22 Talks on the transfer of Cypriot banks’ Greek units to Greece have been frozen on the instructions of President Nicos Anastasiades, the Cyprus News Agency (CNA) reported.

The matter of transferring the operations to Greece’s Piraeus Bank will be part of a comprehensive deal for Cyprus’ bailout tonight at the Eurogroup, the report said.

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Archives March 23, 2013 posted by

Police issue advice to cash-carrying public

 

BANK customers across the island who are withdrawing large sums of cash in the wake of the shaky financial climate in Cyprus are being warned by police to be extra vigilant.

Police said security and safety concerns have been raised by all the extra cash carried around by people or stashed in their homes.

Long queues were seen at ATM’s across the island with depositors withdrawing as much cash as possible – amid leaders scrambling to come up with a bailout deal with the European Union to stave off the financial system’s collapse. 

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Archives March 22, 2013 posted by

Does size matter? Cypriot bank sector problem went overlooked

THERE was no official red flag that Cyprus’ oversized banking sector posed a big risk to its economy until last year, when the European Union set up tools to monitor such imbalances, a Reuters review of EU reports dating back to 2003 showed.
The total consolidated assets of the Cypriot banking sector, dominated by three large banks, are 7.5 times the size of the island’s economy, which produces almost 18 billion euros a year.
The heavy losses suffered by the banks in the Greek sovereign debt restructuring last year was a major factor in Nicosia’s need for an international bailout.
One of the conditions for the bailout, however, is that Cyprus will more than halve the size of its banking sector by 2018 to match the EU average of around 3.5 times GDP.

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Archives March 21, 2013 posted by

Bailout meeting: the long night between Friday and early Saturday morning

 

THERE is nothing more undignified than the sight of a bankrupt person begging for assistance. The contrasts between the cosy and sometimes sumptuous living before the event and the state of helplessness and destitution soon after are stark indeed. While generous persons may come forward to offer their help, they know in their heart of hearts that lending money to a bankrupt person is very risky and is not unlike saving a drowning person, which may cost you your life.

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Archives March 21, 2013 posted by

Cyprus plays risky geopolitical game

AS IT tries to play Russia off against Europe to salvage its economy, Cyprus has embarked on a high-stakes poker game that could see almost everyone lose.

Its banks shattered by exposure to Greek debt, the island state urgently needs a way of bailing out its financial system.

Cypriot policymakers hope they can begin to monetise as yet undeveloped offshore gas fields and position themselves as a vital source of energy for Europe.

However, such income is still years away and delusions of becoming the Qatar of the eastern Mediterranean in the 2020s may prompt Cyprus to overplay its hand now.

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