Saturday August 2, 2014 Search
Weather | Athens
31o C
24o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus comes to terms with testing bailout agreement

 President Anastasiades says deal secures country
A man waits to make a transaction at a Laiki Bank ATM in Nicosia on Monday.

Cypriot President Nicos Anastasiades arrived back in Nicosia Monday to defend a bailout deal with the troika that will see his countrys largest bank restructured and second-largest shut down as part of an overhaul that will cost depositors billions.

We were a breath away from economic collapse, said Anastasiades. Our aim in Brussels was to save the country. We faced some very tough choices.

The deal agreed between Cyprus and the troika, and which was approved by the Eurogroup, will see Cyprus receiving 10 billion euros in loans, beginning with the first installment in May. However, it will also hit Cypruss large banking sector heavily and economists expect the country to experience a severe recession this year.

I do not want to think about what would have happened if we did not reach an agreement, he said.

Anastasiades pledged that capital controls restrictions on the withdrawal and transfer of money were only temporary and would be gradually relaxed over the next few days once stability has returned to the financial sector.

The president said that pension funds bank accounts would be protected and that a criminal investigation would be launched into how Cyprus found itself in such a crisis.

The bailout deal was reached after many hours of talks and following several delays to the start of the Eurogroup on Sunday night.

The deal foresees the countrys second-largest lender, Cyprus Popular Bank (Laiki), going through an immediate resolution process that will see deposits under 100,000 euros, which are guaranteed, being put into a good bank.

Nonperforming loans and uninsured deposits will be placed in a bad bank, which will be liquidated over time. Bondholders and shareholders are also set to lose out.

The good bank will be merged with the countrys largest lender, the Bank of Cyprus. Uninsured deposits at Bank of Cyprus will face a haircut but none of the officials in Brussels was able to say how large the levy would be. It is thought the final figure will be between 30 and 40 percent. The aim is for the healthy bank to achieve a capital ratio of 9 percent.

However, Bank of Cyprus will take over the 9 billion euros of Emergency Liquidity Assistance that the European Central Bank has provided to Laiki.

It is expected that Bank of Cyprus will open on Thursday. Other Cypriot banks, where no haircut will be applied to savings, are due to open Tuesday.

Among the organizations that will suffer losses is the Church of Cyprus. Archbishop Chrysostomos said that the Church had more than 100 million euros in capital, which it will probably lose. Chrysostomos, who has advocated an eventual return to the Cypriot pound, said that local decision-makers should be held accountable for the countrys demise.

Whoever is responsible for getting us in this state should stand in the dock, he said. It is not possible for the people to suffer and there not to be consequences for those responsible.

ekathimerini.com , Monday March 25, 2013 (21:00)  
Libya evacuees set to reach Piraeus on Saturday
Coast guard seeks boost in Aegean
Coalition agrees strategy for target of 5,000 dismissals in public sector
Illegal buildings in crosshairs
Greek PMI drops to nine-month low in July
The return to growth of the manufacturing sector proved short-lived, as the Purchasing Managers Index (PMI) dropped to a nine-month low in July to 48.7 points, against 49.4 points in June, a...
Property tax surplus may lead to more installments or cuts
The government is considering an increase in the number of installments allowed for the payment of the new Single Property Ownership Tax (ENFIA) for 2014 and to reduce its size from 2015 if ...
Inside Business
SOCCER
One win and one loss in Europa League
Greece had a hit and a miss in the first-leg games for the third qualifying round of the Europa League on Thursday, as Atromitos scored a 2-1 win at Sarajevo while Asteras Tripolis lost 1-0 ...
SOCCER
Goalless draw at Liege puts Greens in driving seat
Panathinaikos got the upper hand in the battle for entry to the Champions League playoffs after snatching a goalless draw at Standard Liege on Wednesday. If anything, the Greek cup holders m...
Inside Sports
COMMENTARY
In trying to conquer, Putin unites Europe
President Vladimir Putin is obliged to feign indifference to the sanctions that the European Union and the United States imposed on Russia this week. But, being the player that he is, he mus...
EDITORIAL
Our own worst enemies
A new study has come to exemplify the cliche notion that Greeks find it easier to excel abroad, where they fare much better than they do at home. According to research by epidemiologist John...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek PMI drops to nine-month low in July
2. Property tax surplus may lead to more installments or cuts
3. Athens-Patra in just two hours
4. Plans to tackle Russian crisis
5. Fifth straight day of losses on Greek bourse
6. Libya evacuees set to reach Piraeus on Saturday
more news
Today
This Week
1. Greece evacuates embassy staff, foreign nationals from Libya
2. Britons stranded at sea off Zakynthos towed to safety
3. Greek exporters worried about impact of Russia sanctions
4. Greek bond yields dip as investors anticipate ratings upgrade
5. Human rights watchdog criticizes decision to file Farmakonisi case
6. Jean-Claude Juncker to make first official visit to Athens on Monday
Today
This Week
1. Wine cup used by Pericles found in grave north of Athens
2. Defense Minister Avramopoulos to represent Greece at European Commission
3. Worlds largest solar boat on Greek mission
4. Greece names fifth privatization agency chief in four years
5. What lessons can we draw from antiquity?
6. Greek coast guard picks up 77 migrants off Myconos
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.