Cyprus Archives - Page 2 of 3

Cyprus Economy May Contract By 13 Percent This Year: Government

The Cypriot economy could shrink by much as 13 percent this year, warned a government spokesman on Thursday, higher than a previous estimate, which took into account the affect of the EU bailout.

“The recession may not be 8.7 percent in 2013 – as is estimated – it may reach 13 percent,” Christos Stylianides told state television RIK; although he added that Cyprus could experience a recovery by as early as next year – if the correct measures and investments were introduced.

Cyprus Church Leader Call On Ministers To Resign, Vows To Create Jobs

The head of Cyprus’ powerful Orthodox Church, Archbishop Chrysostomos II, vowed on Sunday to use its financial resources so that ordinary people “won’t go hungry”, whilst calling on the island’s finance minister and central bank chief to resign following the announcement of the controversial EU bailout plan.

Germany’s Dangerous Gamble On The Cyprus Bailout: George Friedman

Since announcing the Cyprus bailout on March 25, the European Union, and by de facto Germany, have been keen to emphasise the uniqueness of Nicosia’s situation – downplaying a repeat for any other eurozone nation. The question, of course, is whether foreign depositors in European banks will accept that Cyprus was one of a kind. Indeed, we must ask ourselves why the Germans would have created this risk in the first place.

“Superhuman Effort” Needed To Reopen Cyprus Banks, Says Central Bank Governor

Cyprus’s central bank governor Panicos Demetriades has called for a “superhuman effort” to meet a Thursday deadline for reopening banks, warning that any further delay could spur further doubts about the economy and spark more unrest – as thousands of Cypriots protested on the streets on Tuesday.

Cyprus Bailout: Centre Of A Power Struggle Over Natural Gas?

If government estimates are accurate, Cyprus may be sitting on an amazing 60 trillion cubic feet of natural gas – enough to cover 40 percent of the European Union’s gas supplies. The complication however comes in that Russia, a strong ally of Cyprus, is already Europe’s largest supplier of natural gas; and neither Russia nor the European Union are willing to give up their “pawn” in an ongoing energy struggle.

Cyprus-Troika Strike Last Minute Deal, No New Parliament Vote Required

Cyprus leaders in the early hours of Monday morning clinched a last-minute deal with international lenders for a 10 billion euro ($13 billion) bailout, reported Reuters, effectively shutting down the island’s second biggest bank in the process, while bank deposits above 100,000 euros will also be frozen and be used to resolve debts.

Cyprus MPs Reject EU-IMF Bailout Deal, With Zero Votes In Favour

Cyprus lawmakers on Tuesday voted overwhelmingly against the bailout deal offered by the European Union and the IMF last Saturday, with one Member of Parliament denouncing the measures as “blackmail”, while not a single vote was cast in its favour.

The parliamentary session ended with 36 MPs voting against the bill, while the remaining lawmakers abstained. At the heart of the opposition was a controversial levy of at least 6.75 percent that would be slapped on all bank deposits across the island, including a 9.9 percent charge for deposits above 100,000 euros.

Cyprus to Impose Controversial Bank Levy on Savers

Eurozone leaders on Saturday agreed to hand Cyprus a bailout worth 10 billion euros but on the condition that local savers forfeit up to 10 percent of their deposits to stave off a sovereign bankruptcy.

Under a controversial deal struck with international bailout lenders after all-night Friday talks, all deposits in the island’s banks will be hit with a levy as a condition for a desperately needed 10 billion euros bailout.

Cyprus Bailout: The Death Of National Sovereignty?

At less than 0.25 percent of the eurozone’s GDP, Cyprus’s economy has long been thought to be too small to pose a systemic threat to the region. Yet, with its latest bailout package, agreed upon by EU officials on Saturday, the tiny nation is now at the centre of an existential storm: where countries are surrendering their sovereignty in favour of solvency.

Russia May Join Cyprus Bailout: Report

Russia is set to join the International Monetary Fund, the European Central Bank and the European Commission in bailing out troubled Cyprus, reported Reuters on Thursday, on condition that Moscow receives the same credit status as euro zone lenders – meaning that it would get repaid right after the IMF.