Wednesday May 27, 2015 Search
Weather | Athens
14o C
09o 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)  
Differing takes on talks
Opposition presses PM over deal with lenders
Stamati makes sixth appeal to be granted house arrest
Athens responds after Albanian PM calls for new talks on maritime borders
Canada´s Oliver hopeful of solution in Greek crisis talks
Canadian Finance Minister Joe Oliver said on Wednesday he did not think “anything inadvertent” would happen to derail progress towards a solution on the Greek crisis. “People are looking at ...
Piraeus Bank reports loss of 69 mln euros in Q1
Piraeus Bank, Greece’s second-largest lender by assets, on Wednesday reported a loss of 69 million euros in the first quarter as provisions for bad loans continued to weigh on results. The b...
Inside Business
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
Inside Sports
COMMENTARY
Romantic notions meet reality
Before the elections, there was a considerable number of people who totally disagreed with the ideas and program put forward by SYRIZA, but they expected that the leftist party would, at lea...
EDITORIAL
Solving the Gordian Knot
The leftist-led government, as well as the country, have both been seriously damaged and exposed to risk from the evident indecision and repeated contradictions dogging the ongoing negotiati...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Differing takes on talks
2. Opposition presses PM over deal with lenders
3. Canada´s Oliver hopeful of solution in Greek crisis talks
4. Piraeus Bank reports loss of 69 mln euros in Q1
5. Stamati makes sixth appeal to be granted house arrest
6. Athens responds after Albanian PM calls for new talks on maritime borders
more news
Today
This Week
1. Some 300 mln left banks on Tuesday
2. Romantic notions meet reality
3. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
4. The G-7's problem: Can the world deal with a Greek default?
5. Solving the Gordian Knot
6. FYROM PM blames Greece for name impasse
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Hotel contracts with a ‘Greek default clause’
5. Neither Grexit nor a dual currency will solve Greece’s problems
6. Merkel said to plan address for Greece if deal reached
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.