Wednesday September 3, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Anastasiades concludes talks with troika as option of deposit tax returns

Cypriot President Nicos Anastasiades held talks with the troika in Nicosia on Friday morning as it looked like his government might have to abandon plans to create an investment fund to prevent the collapse of its banking system.

Cypriot political parties proposed on Thursday the creation of a solidarity fund to be securitized with social security fund reserves, state assets, Church property and expected natural gas revenues.

However, it appeared on Friday that this plan was to be rejected by the troika. German Chancellor Angela Merkel told lawmakers in Berlin on Friday morning that she was against the idea of using pension money for the fund.

The talks came as hundreds of protesters gathered outside Cypriot Parliament. There were reports that staff at Cyprus Popular Bank (Laiki) were demanding that the government return to the original plan to tax deposits on the island.

At the beginning of the week, Cypriot lawmakers rejected a plan, agreed with the Eurogroup, to tax deposits above 100,000 euros at 9.9 percent and those between 20,000 and 100,000 euros at 6.75 percent.

There was increasing speculation on Friday that Nicosia might have to return to a deposit tax to secure a 10-billion-euro bailout with the troika, which would avert the collapse of its banking system.

The European Central Bank said on Thursday that it would stop providing liquidity to insolvent Cypriot banks on Monday if no agreement with the troika is in place.

Another key bill submitted to Parliament on Thursday also contained the plan for placing Laiki in resolution. It foresees the lender’s nonperforming loans being transferred to a “bad bank” and deposits under 100,000 euros, which are guaranteed, being placed in a “good bank.” Uninsured deposits would be placed in the bad bank.

The deputy leader of President Nicos Anastasiades’s conservative DISY party, Averof Neophytou, said that the winding down of Laiki would save Cyprus 2.3 billion euros, leaving it to find another 3.5 billion from other sources in order to reach an agreement with the troika for a 10-billion-euro bailout.

He added that 361,000 out of 379,000 accounts in the bank contain less than 100,000 euros. He also said 8,000 jobs at the lender would be saved.

The Cypriot government is expected to make a statement at around noon on Friday to clarify its plans.

ekathimerini.com , Friday March 22, 2013 (11:33)  
Report points to suspicious clinic charges to EOPYY
New rector seeks to introduce ID checks at University of Athens
Gov’t upbeat in troika talks, says budget ´on target´
Anti-racism bill approved in principle, final vote Friday
Helexpo sell-off plan to be ready by mid-October
Helexpo, the state company that organizes major exhibitions such as the Thessaloniki International Fair, is in the last stages of drawing up its privatization plan. Sources say that the prop...
Maniatis talks energy with Washington’s man in Athens
Energy Minister Yiannis Maniatis held a meeting yesterday with US Ambassador in Athens David D. Pearce to discuss possible natural gas supply problems that Europe may face this winter due to...
Inside Business
Grateful Saviola thanks Olympiakos, joins Verona
Former Argentina international Javier Saviola has thanked Greek champions Olympiakos for the "beautiful moments" during his season-long stint in Greece as he left the club to join Serie A ou...
SOCCER
Greece defender Papadopoulos fires parting shot at Michel
International defender Avraam Papadopoulos suddenly quit Olympiakos on Monday to join Turkish club Trabzonspor, and fired a parting shot at Olympiakos manager Michel putting the blame on the...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the people’s favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Helexpo sell-off plan to be ready by mid-October
2. Maniatis talks energy with Washington’s man in Athens
3. Task force to examine cases of extreme taxation, customs issues
4. Hotels hike prices by 10 pct in H1 of 2014
5. Pension system nears breaking point
6. Report points to suspicious clinic charges to EOPYY
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Reforms to dominate Greek talks in Paris, debt relief talks later, says source
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Moderating expectations
6. Greece needs private debt overhaul, Piraeus Bank CEO says
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Strong undersea quake occurs off island of Milos, felt in Athens
4. Hardouvelis, ECB executive discuss bank program, stress tests
5. Greek quest for debt relief faces hurdles in Paris
6. Prospect of Greek grand prix back on the agenda; huge investment needed
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.