In order to be able to bring you updates as fast as we possibly can, we’ve forked the live-feed for the first week of the Cyprus bailout crisis.
Below you can find the latest links, tweets, articles, opinions and updates from on and around our lovely island.
As usual, feel free to ask questions, share news/links with us using the comment system on the right.
We tried choosing a quote/snippet from this piece, but landed up copying the entire article, so we instead will just provide a link to it.
Why it WASN’T the ‘oligarchs’ who bankrupted Cyprus: http://www.forbes.com/sites/timworstall/2013/03/31/theres-something-very-strange-about-the-cyprus-bank-haircut-very-strange-indeed/
This feed will go into ‘Archive Mode’ today, to serve as another trace of the events as they unfolded in the second week of the Crisis.
If you are a journalist/blogger/thinker and are looking to get your voice heard relative to anything in Cyprus, get in touch.
More and more reports and bank statements are being produced accusing Person X or Person Y of transferring money out of the country, especially as the political parties are going to ‘war’ with each other. We must remember that business must go on, through the buckets of salt-lathered news stories and ‘leaks’, and that an investigation is under way.
Are we going to be judge and the jury? And then the executioner?
Archbishop Demetrios of America held a telephone conversation with President of the Republic Nicos Anastasiades on Wednesday to express the vigilance, support and solidarity of the overseas Greeks and Cypriots in the light of the recent Eurogroup decision for Cyprus. President Anastasiades reaffirmed that Cyprus will fight and overcome the difficulties and thanked the Archbishop and all the Greeks and Cypriots abroad for their solidarity.
Finally, maybe some help for the ‘little guys’? Are are we hoping for too much?
A broad meeting took place Wednesday under President of the Republic Nicos Anastasiades, during which measures were discussed which aim at re-starting the economy through development projects, less bureaucracy and investments
Ministry of Labour and Social Insurance will reconsider all social transfers and programmes in a bid to alleviate social consequences of this economic crisis.
The European Commission has decided, after a suggestion submitted by its President Jose Manuel Barosso, to set up a Task Force for Cyprus with a view to help the Cypriot authorities restore financial and social stability on the island.
JCC payment systems continue their normal operation and merchants should be accepting the credit/debit/prepaid cards in order to better serve their customers, General Manager of JCC, Neophytos Karamanos told CNA.
The real victims, the small and medium businesses, caught in the crossfire.
“I’m not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation.
The business is definitely ruined, all Cypriot workers to be fired.
We are moving to small Caribbean country where authorities have more respect to people’s assets. ”
Capital Controls are expected to be lifted in around a month, according to reports from Financial Minister.
….and travelling economy class, it appears. Shocking, but also good, right?
A reminder that the President and his cabinet are also taking a wage cut, 25% and 20% respectfully. Take that as you will, we think it’s a good sign.
An alternate view – Cyprus Isn’t Calm, It’s Paralyzed (http://www.businessinsider.com/cyprus-is-paralyzed-not-calm-2013-3)
Some reported that they could only draw up to 100Euros per person today, but all-in-all we stayed calm and collected. Solidarity was senses between the public, the police and the bank workers. We are all in this together, and it’s fairly obvious we have realised this.
It has been announced that Laiki banks will not open due to a technical fault in their systems. More as we get it.
Full text of the capital controls decree:
And that ends today’s coverage. We’ll be back tomorrow with the latest from the opening of the banks. Please stay safe and remember to stay calm, the employees of the banks and police force are in the same bucket as the rest of us. Stand together, and stay calm.
The British Treasury is working with the Cypriot authorities on a “British solution” to the threat of losses facing the bank’s depositors in the UK, said the Chancellor of the Exchequer George Osborne during a Treasury Select Committee appearance. He said that discussions are taking place at the moment “to try to avoid the branch of Cyprus Popular Bank in the UK, or branches, becoming sucked into the Cypriot resolution process”. He added he could not disclose anything more about the direction of the negotiations. – See more at: http://www.cna.org.cy/
?he Electricity Authority of Cyprus will reduce the cost of electricity a further 3%, in addition to the scheduled reduction of 5.75% that will be in place from the 1st April. The announcement was made on Wednesday by Commerce, Industry and Tourism Minister George Lakkotripis after a meeting this morning at the Presidential Palace with all parties involved in the energy sector.
- Via: http://www.cna.org.cy/
On the subject on how to fight unemployment:
The Government should help Private Companies develop more extensive research and development programmes by rewarding innovation, allowing for more skilled workers to be hired. – Dr Pittas (paraphrased from TV)
We agree! The brain-drain is going to hurt more than just this generation!
Speaking exclusively to Channel 4 News in Nicosia, Chris Pavlou said Cypriot President Nicos Anastasiades was told that if he wanted the 10bn euro bailout from the EU and IMF, he had no option but to agree to these terms.
Watch the interview here: http://ektgn.eu/14p0y6p
Over the counter withdrawals will also be capped to 300Euro per account per day.
Yiangos Demetriou, head of internal audit at the Central Bank, said on state television that the controls would allow unlimited use of credit cards within Cyprus, but set a limit of 5,000 euros per month abroad. He said the measures would last four days but could be reviewed.
We couldn’t agree more:
IF the banks open tomorrow, as a friend, I ask you to stay cool and be calm. Bank employees are not to blame for the idiotic decisions (or inaction) by the authorities here and in the Eurogroup. Bank employees are in a more fragile position that the rest of us, so be kind. – Sarah Fenwick
May be unrelated:
— Kathimerini English(@ekathimerini) March 27, 2013
— Spyros Theodoritsis (@spyrosth) March 27, 2013
Withdrawal limit for all banks from cash machines: 300Euro, but the limit is compounding, allowing you to draw 600Euro if you didn’t draw the day before. According Central Bank spokesman on PIK.
We must add that… transferring money abroad may only be allowed for full-time residents.
180 Guards from G4S (from the Olympic security detail) will be employed to provide security during the bank openings.
They were also used in assisting the state police in aiding the restocking of cash machines in the last week.
We’re also lead to believe that you can indeed carry over 3,000Euros into the country, these limits are only imposed onto outgoing cash-flow.
There is also talk of Tax Amnesty, in order to avoid questions regarding large deposits from abroad. More as we get it…
These may only be the draft controls as there is no mention of what/how-much one can draw in person in cash at a teller… a big flaw really in averting a bank run.
Thanks to Chester W, for informing us about the key points regarding the Capital Controls.
- Cheques can be deposited, but NOT cashed.
- Transfer of money abroad ONLY ALLOWED FOR:
- paying for imports (with valid documentation)
- student’s accommodation and tuition costs (up to 10,000Euro per quarter)
- credit card usage, up to 5,000Euro per person per month
- Time deposit accounts must be allowed to mature before withdrawal
- Only 3,000Euro in cash may be carried over any border at any time by any person.
- These controls apply to ALL transactions, transfers or payments not completed by today.
- These controls apply to ALL accounts, payments and transfers, regardless of currency used.
According to the Minister of commerce industry and tourism (Mr Lakkotripis) a meeting will be held between the ministry, CERA (Cyprus Electricity Regulation Authority) and other authorities with main subject, the adaptation of electricity prices to the shocked economy. The minister claimed that the measures are to be applied immediately in order to aid the peoples finances during this difficult time. So hopefully this months electricity bill will be lower than expected.
Reports coming in that it’s 99% sure the banks will OPEN tomorrow.
We await info on what the capital controls will be, confirmed by the Central Bank of Cyprus.
And the games begin/continue:
(Reuters) – Turkey has shelved its planned projects with Italy’s ENI over the energy company’s involvement in energy exploration in Cyprus, Turkey’s Energy Minister Taner Yildiz told reporters on Wednesday.
However, as we reported before, he had already tried to hand in his resignation, and was refused. Someone has their wires crossed, we’re working to get to the end of it. (It could very well be us, we’re overwhelmed with the amount of information pouring in, out and around our little island)
Students and School Goers are demonstrating in Anexartisias street in Limassol. More news and photos as we get them..
Piraeus Bank officially announced on Tuesday the absorption of the Greek branches of all three Cypriot banks active in this country, adding that they are finally reopening on Wednesday after a last-minute glitch prevented them from doing so on Tuesday. The banks had remained closed for 11 days.
The transfer deal for the Greek branches of Bank of Cyprus, Cyprus Popular Bank (also known as Laiki) and Hellenic Bank was signed on Wednesday in Nicosia after four days of protracted negotiations that ended with Piraeus agreeing to pay 524 million euros to the Cypriot lenders. The agreement also includes the absorption of Investment Bank of Greece (IBG), a Laiki subsidiary. http://ektgn.eu/13w19E3
The ECB official said “he would pick up the phone and tell president (Mario Draghi) to order the shut-down of the two banks” Sarris said, describing the pressure he was under during negotiations.
It is being said that Uninsured Laiki Depositors May Face 80% Loss And 6 To 7 Years Wait For Payout
We were under the impression that they were set to lose 100% of their uninsured deposits. Some ‘good’ news?
If anyone is responsible for the bloated size of the Cypriot banking system, it is not the Cypriots, who were only pursuing a market opportunity, but the architects of the single currency.
A fundamental principle of monetary union – that the currency is worth the same, wherever it is held and whoever holds it – has been shattered. Some euros, it would seem, are more equal than others. The possibility of capital controls to prevent deposit flight when the banks reopen only further clouds the picture. Free movement of capital is another basic principle of monetary union which the eurozone seems casually prepared to disregard. This is not a proper currency.
A great piece on they the EU’s bully boys will regret penalising tiny Cyprus, have a read here:
Bank of Cyprus Does Not Accept Resignation of Chairman and Four Directors – Statement
— Fabrizio Goria (@FGoria) March 26, 2013
BRITISH pensions will not be paid into Cypriot bank accounts for the foreseeable future and expats are advised to open UK accounts, the British Department for Work and Pensions said on Tuesday.
We’re working hard on speeding up the loading of all our live-feeds to be able to deliver breaking news as it happens.
We’ve also fixed a bug allowing for faster/actual loading for iPhone users. Thanks for getting your feedback to us.
*Governor of Central Bank of Cyprus
today isn’t our day re: titles of people involved. Sorry!
Calls for the President of the Central Bank of Cyprus to resign after his statement regarding the stability of the Bank of Cyprus… more as we get it…
We’re sorry for the loading time of this page… once again the number of updates we needed to make has been extraordinary, we’d even say uniquely so.
How this restructuring of the Cyprus banks will “work”:
Some insight into what ‘resolving a bank’ incurs: http://online.wsj.com/article/SB10001424127887323466204578382792664377904.html?mod=wsj_share_tweet
“The capital owned by the Church, which was over 100 million euros, has been lost,” the archbishop told reporters.
Contains sensitive information, not for further distribution
Memorandum of Understanding on Specific
Economic Policy Conditionality
correction: his role was the Chairman of the Bank of Cyprus it appears.
BREAKING: Reports coming in that the President of the Bank of Cyprus has resigned with immediate effect.
This is going around Twitter and Facebook like mad:
Please scroll down to the bottom right of the CNN page and VOTE YES please. They ask if you would go to Cyprus for a holiday! We should all vote. http://edition.cnn.com/
Currently the result is 57% NO, only 43% YES. Let’s get it turned around!!!
Let us know if you have voted, we wonder if online we can all work united… no kommata, just common sense.
Remember, OnThisIsland.com is not affiliated with any political party or member of parliament, we just want to help our fellow citizens and friends of Cyprus get as much info and stability as possible
It’s Tuesday and the protests are growing…
Have a look at this video captured a few moments ago (11:30am) in Nicosia:
This report states that whilst a new bailout was being negotiated, money was pouring out of the island before a freeze was imposed this morning… http://ektgn.eu/X5lCM2
Both the Archbishop and Anastasiades have confirmed that a criminal investigation WILL be carried out to find out how the economy got into this state.
Cyprus President on CYBC Says His Only Aim Was to Save Cypriot Economy
— Fabrizio Goria (@FGoria) March 25, 2013
The president is currently giving a speech live on Cypriot TV. We’ll report any important details before getting the transcript translated.
But in afternoon trading shares radically turned direction, brought lower when Eurogroup head Jeroen Dijsselbloem told the Financial Times and Reuters the hard-won agreement to liquidate a major Cypriot lender could become a model for other troubled corners of the eurozone.
Read more: http://ektgn.eu/ZnJsOk
The Euro is Killing Europe http://ektgn.eu/13r3eRH
Agree or Disagree? Sound off in the comments…
Laiki and BoC to stay closed until Thursday.
ALL BANKS (except Laiki and Bank of Cyprus) will open tomorrow says man at Central Bank of Cyprus to Reuters.
For those who missed it,
The full press briefing Michalis SARRIS, the Cypriot Minister for Finance, gave the early hours of this morning:
ECB’s reaction to the agreement on the Cypriot macroeconomic adjustment programme – http://www.ecb.int/press/pr/date/2013/html/pr130325.en.html
Euro Weakens as Cypriot Lawmaker Nicholas Papadopoulos Considers Currency Exit:
Cypriots Mourn Collapse of Livelihoods as Bailout Crushes Banks :
RTRS: Laiki Bank UK said customers could continue to withdraw their cash but warned that deposits above €100k may not be safe
— Fabrizio Goria (@FGoria) March 25, 2013
Cyprus, it’s not over. This piece describes the possible effects of the agreed package…both on the island, and off. Sorry for the gloomy morning news. http://blogs.reuters.com/felix-salmon/2013/03/25/cyprus-its-not-over-yet/
Bullet Point summary of the Cypriot Bailout Agreement http://www.reuters.com/article/2013/03/25/us-eurozone-cyprus-text-idUSBRE92O02920130325
Summary of the EUROGROUP statement at the Press Conference. http://rt.com/news/cyprus-eu-imf-bailout-764/
“we are not sure when when the cypriot banks wills be open” – Jeroen Dijsselbloem, EUROGROUP
“safeguard all deposits below EUR 100.000 in accordance with EU principles” EUROGROUP STATEMENT 25TH MARCH 2013
“solutions focused on the banks that are in trouble already. laiki bank will not be saved. We have to make sure there is orderly resolution process” Jeroen Dijsselbloem, EUROGROUP
BREAKING: OFFICIAL EUROGROUP STATEMENT AND INFORMATION ABOUT THE CYPRUS CRISIS. http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/136487.pdf
“solution better than last week… focused problems which concentrate on the 2 banks.” – Jeroen Dijsselbloem, EUROGROUP
“José Manuel Barroso intends to create a task force for cy, to provide assistance to the CY authority… for growth… to build cy… ” – Olli Rehn. EUROGROUP
“difficult road to get here but agreement has approval of all parties” Jeroen Dijsselbloem, EUROGROUP
“we’ve put an end of the uncertainly to cyprus and the euro area” Jeroen Dijsselbloem, EUROGROUP
Jeroen Dijsselbloem speaks as we live blog this.
BREAKING NEWS: “(Reuters) – Cyprus reached an outline deal with international lenders for a 10 billion euro ($13 billion) bailout that would shut down its second largest bank and inflict heavy losses on uninsured depositors, an EU spokesman said early on Monday.” More details to follow. http://www.reuters.com/article/2013/03/25/us-cyprus-parliament-idUSBRE92G03I20130325
Lest we forget last week: whatever is agreed has to pass Cyprus’s parliament.
— Charles Forelle (@charlesforelle) March 25, 2013
Deposits below 100,000 euros (85, 232 pounds) in Laiki will be transferred to Bank of Cyprus. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt. It remains unclear how large the write-down on those funds will be.
Draft deal would see secured deposits in Laiki moved to Bank of Cyprus and shutting Laiki, sources say. Bank of Cyprus also to be hit
— Luke Baker (@LukeReuters) March 24, 2013
No levy, bail-in Bank of Cyprus (40%), it survives, no mention Laiki ELA liabilities -source
— Bruno Waterfield (@BrunoBrussels) March 24, 2013
So many sources are saying an agreement has been reached, and is now being put in front of the Eurogroup. Anyone else wondering if 2:30AM is the best time to be thinking about the people/businesses/industries of Cyprus?
Rumours are that the Eurogroup will reconvene in 15 mins… We’ll let you know. Again.
It was a matter of time… We’re turning on each other… Bomb goes off in Bank of Cyprus in Limassol. http://bit.ly/Zi99mN
Cyprus’ bailout talks deadlocked over banks
Yet, some people are claiming the Eurogroup meeting is still going to happen, and soon. What a mess.
So Troika is divided. EU pretending 5.8 is enough. IMF pretending that much bigger haircuts wont kill the patient. Poor Cyprus.
— Gabriel Sterne (@GabrielSterne) March 24, 2013
Eurogroup meeting postponed to 7 a.m. This is not a good signal for a solution in Cyprus crisis…
— Erik Steijn (@eriksteijn) March 24, 2013
aaaaand now they’re saying that the Eurogroup hasn’t stared yet. Again. For now. Maybe. Kind of. You know? We don’t either! Argh!!
Cyprus speaker of Parliament: Eurogroup has started, Prez has spoken w us, no announcement yet, we have been told abt several proposals
— Efthimia Efthimiou (@EfiEfthimiou) March 24, 2013
EU staffers were snapped carrying boxes of pizza to the European Council building earlier this evening, as the eurogroup meeting was delayed. Refuelling for a long night ahead?
- The Guardian
Meeting between Anastasiades, Lagarde, Draghi, etc, still going | Eurogroup start time: unknown.
— Nikos Chrysoloras (@nchrysoloras) March 24, 2013
Another delay has been announced… This is going to be a long night isnt it.
The Cypriot delegation in Brussels is liaising with politicians in Nicosia all the time. That means that a deal (if one comes) could quickly be pushed through parliament.
President Nicos Anastasiades is in constant contact with political party leaders now gathered at the presidential palace in Nicosia with the RIK TV station saying he is regularly updating them on the progress of talks in Brussels.
The idea is to get as much momentum behind any deal reached so that it will be passed swiftly through parliament, according to officials.
There may be further delays to the start of the eurogroup meeting…
Greek website says that Anastasiades has indeed threatened to resign if the terms are not agreeable by tonight… http://ektgn.eu/Zlx7dv
Still unconfirmed by any gov sources.
Athens News Agency reports Anastasiades has rejected troika demands for Bank of Cyprus to take on Laiki Bank’s €9bln in ELA funding
— Kathimerini English(@ekathimerini) March 24, 2013
Remember: if the page goes ‘offline’ just refresh… we can’t really use our cards to upgrade the service much more right now… sorry!
All this talk of ‘pawns’ made us feel like we’re in a game of chess, and we believe we are… but everyone else is playing dodgeball though…
The meeting hasn’t started yet and the fingers are being pointed…
SCHÄUBLE: “We are ready for a solution, we want to do everything and not spend every weekend here, but it does not depend on us, but Cyprus”
— Nikos Chrysoloras (@nchrysoloras) March 24, 2013
Talks in Athens are underway with regard to the absorption of Hellenic Bank, the smallest of three Cypriot lenders with branches in Greece, by Piraeus Bank, according to the Cyprus News Agency. http://ektgn.eu/Zlrj3M
Anastasiades is reportedly still in his lunch meeting in Brussels. Possibly the reason for the delay?
Other media companies basing their operations in Cyprus have also been affected.
Everyone talks of Billionaires, Retirees, and Bank Workers. The NYT takes a look at how an online company who recently said up an HQ in Limassol was affected.
“Will we be able to continue in Cyprus? We think we can,” Mr. Lalonde said. “But we’re worried about the stability of everything. They have really undermined their own foundations. And there’s no way of turning it back.”
RT.com have also confirmed that all Cyprus local banks have imposed an ATM withdrawal limit of 100 euros per day, according to a government official.
Cyprus state TV (RIK): Bank of Cyprus resolution not on table in Brussels so far, according to gov’t sources
— Nick Malkoutzis (@NickMalkoutzis) March 24, 2013
omg omg omg!
little girls all over the island have flooded our feeds with ‘Cyprus needs 1D’… will everyone please disable their daughters’ internet so we can actually see what people in Cyprus need to know. kthnxbye!
CYPRUS, for me, will always be home. I have lots of friends and family there, including my mother. I have a house there and visit several times a year.
It’s a beautiful place full of friendly, hard-working people and that’s what makes its financial situation so incredibly sad.
Cypriots are entrepreneurial people. We pay our taxes and have always had high employment and good jobs on offer. – Theo Paphitis
Running with a smile! Many many many people took part in the Limassol Marathon today. Things carry on and people will keep moving…
Turkish officials have even suggested that if the Greek Cypriot administration insists on grabbing these reserves for itself, then Turkey will intervene militarily.
Photo from yesterday’s march in Nicosia. Peaceful, but in numbers.
Via : https://www.facebook.com/gpoullos
A split is apparent between the Eurozone ministers with regards to the handling of Cyprus. With some blaming the Cypriot ‘overblown’ financial sector.
“To all those who say that we are strangling an entire people … Cyprus is a casino economy that was on the brink of bankruptcy,” French Finance Minister Pierre Moscovici told Canal Plus television.
However, Luxembourg’s Foreign Minister (they have a banking sector that is 20x their GDP) is unhappy with the methodology of the Eurogroup saying:
Some countries, such as my country and Cyprus also, have legally built something up over the past decades and you should not disparage that on principle. There is no one who says that the automobile industry or the weapons industry are over-proportional in Germany.
Whilst we keep the posts coming in, feel free to smash some our ice barriers in order to release some stress.
We’ll keep on blogging as the news comes in…
Reuters wraps up the situation whilst we wait for word from the meeting in Brussels.
* Government has difficult task ahead, spokesman says
* Island nearing Monday deadline to seal EU bailout
* No agreement among Cypriot leaders on Saturday night
* Faces banking collapse, possible euro zone exit
* Cyprus a “casino economy”, says French minister
Developing nations must be ready for a financial market selloff if the Cypriot banking sector collapses -World Bank Managing Director
— cigolo (@cigolo) March 24, 2013
Turkey’s Ministry of Foreign Affairs has issued a statement regarding the Cypriot Government’s plan B. http://ektgn.eu/16RmZRf
Dangerous developments, in an already tense situation.
The eurozone will show Cyprus the exit from the EU single currency today unless it bows to demands to effectively wind down its largest bank, devastating the island’s economy.
Report saying that Troika could be asking for an additional €2bn from Cyprus http://ektgn.eu/16RlF0P
President Anastasiades and his team have arrived at the ‘mega meeting’ in Brussels. More as we get it…
Christian Noyer, Governor of the Bank of France believes “Nobody wants Cyprus to leave the euro” and Finnish Prime Minister Jyrki Katainen told reporters “I’m very confident that we can see solutions on Sunday or Monday.”
The rescue of Cyprus could also effect funds invested by the German state of Brandenburg. A pension fund from the state has been partly invested in local banks and bonds. This is earning the local Finance Minister a fair amount of criticism from within Germany.
Editors Note: After Ali helped us, and many of our readers, source great information during this crisis period, I’d like to welcome him to our live blogging team.
It’s about time you got an ‘official’ role!
I’d also like to quickly thank Peter and Achilleas for their valuable sources throughout the day!
Nicosia official says Cyprus not in reach of deal with troika, blames IMF.
People with Hellenic Bank have reported that they’ve received the following message:
As imposed by MasterCard, usage of cards outside Cyprus for daily cash withdrawals and purchases is max 950 USD and 9,500 USD respectively.
To make this more clear :
Troika agree to impose 20% tax on deposits over 100,000 euros at Bank of Cyprus and 4% at other banks, no word on LAIKI at the moment..
LIVE Video feed from the Wall Street Journal “Several hundred bank workers outside #Cyprus presidential palace protesting closure plans.”
Protest currently taking place in Nicosia via: https://twitter.com/MatinaStevis/status/315482181592047617/photo/1
Bank employees marching the streets of Nicosia
“NOBEL PRIZE winner Christopher Pissarides believes Cyprus should not accept the view it must cut its banking system by half simply because certain eurozone ministers think it’s a good idea.”
— MaroHadjisophocleous (@MaroCyprus) March 23, 2013
Tom Scholar a key player in the 2008 bailouts of Royal Bank of Scotland and Lloyds Banking Group, is flown out to Nicosia to advise on the bailout. Nicosia government accepts offer of ‘technical assistance’ http://www.guardian.co.uk/world/2013/mar/22/cyprus-crisis-uk-experts-advise-bailout
We understand and apologies for the site dropping at times as well as slow load times (even dial up connections will be laughing at some of the page load times) due to a lot of traffic currently coming through.
On another note its great to see how some cypriot companies are doing what they can to help out : http://www.cyprus-mail.com/bakeries/special-offers-basics-bakeries/20130323#.UU2x8h1x2tw.twitter
Quick recap on what one analyst thinks will happen if Cyprus does collapse : http://bigstory.ap.org/article/what-happens-if-cyprus-collapses
Mr. Sarris: “Significant progress has been made toward an agreement at least with the troika which will report to the Eurogroup,” he said.
“Two or three issues need further work.”
Talks set to continue later this afternoon
According to new reports “Cyprus eyes 25 percent levy on big savers” http://www.reuters.com/article/2013/03/23/us-eurozone-cyprus-finmin-idUSBRE92M04320130323
A pretty scary look at the possible outcomes of a Cyprus economic collapse. http://news.yahoo.com/happens-cyprus-collapses-083201181–finance.html
Cypriot president and party leaders are on the way to Brussels. More as we get it.
Party officials have told Reuters that discussions were centered on a levy on depositors holding over 100,000 euros, sparing smaller savers. One official said the tax could be limited to big savers at the island’s biggest lender, Bank of Cyprus, at a 20 percent rate.
As you can tell we’re getting our team up to chase so you can have more hands and eyes on the news, pushing out more and more information as we prepare for busy busy days ahead.
Congrats to Achilleas and Peter to your first posts, we look forward to reading what you two find!
Russians flock to troubled Cyprus in attempt to protect finances
Nigel Farage for RT News: “EU wants to steal money from Cypriots bank accounts” http://www.youtube.com/watch?v=JMf_KwQ2Xlk
We’ve had a hard night, with much news to think about. We’re gonna be winding down the feed for the evening to take a breather. If there’s anything breaking, we’ll obviously post it up.
Thanks again for choosing us as your live bloggers through these tough times.
ALERT: IMF Managing Director Christine Lagarde to attend this weekend’s Eurogroup meeting in Brussels regarding Cyprus.
— CNBC (@CNBC) March 22, 2013
MANY are expecting a haircut announcement tomorrow….
Cyprus returns to deposit tax in last ditch effort to avert collapse
Also via ITV: The Cypriot parliament will vote tomorrow on a proposal to impose a tax of under 1% on all bank deposits in the country.
Via ITV: Cyprus has passed a law that will allowing the government to split failing lenders into good and bad banks in an attempt to secure a bailout from the European Union to avert bankruptcy.
As laws are passed, Twitter is ablaze with fury over the ability for accounts to be ‘raided at will’.
What we have realised from the speedy votes is we don’t understand the voting system for passing in laws. Thankfully the internet has many many great people who do
Struggling Cyprus could look to Iceland as example for recovery – http://rt.com/op-edge/cyprus-iceland-example-recovery-574/
Law for creation of Solidarity fund approved.
The parliament is busy voting and passing laws… we’re translating as fast as we can.
According to CNN Cyprus to Issue Long-term Bonds Linked to Natural Gas
To re-iterate, the decision to approve the capital controls bill means Cypriots are likely to soon face tough restrictions on how much money they can take out of their bank, on access to their own savings, and on their ability to transfer funds.
This is the full list of powers that could be imposed ( translated by @YiannisMouzakis this morning)
Restrictions in daily withdrawals
Ban on premature termination of time savings deposits
Compulsory renewal of all time savings deposits upon maturity
Conversion of current accounts to time deposits
Ban or restrictions on non cash transactions
Restrictions on use of debit, credit or prepaid debit cards
Ban or restriction on cashing in checks
Restrictions on domestic interbank transfers or transfers within the same bank
Restrictions on the interactions/transactions of the public with credit institutions
Restrictions on movements of capital, payments, transfers
Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety
Capital control laws passed
UK experts to fly in to advise on bailout
Officials led by Treasury mandarin Tom Scholar visit island after Nicosia government accepts offer of ‘technical assistance’
Cyprus president and party leaders to go to brussels tomorrow after levy vote, according to CYBC
— Fabrizio Goria (@FGoria) March 22, 2013
Moody’s downgrades Russian Commercial Bank (Cyprus) Ltd to Caa2; on review for downgrade
— Fabrizio Goria (@FGoria) March 22, 2013
Moody’s downgrades Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank
— Chris Adams (@chrisadamsmkts) March 22, 2013
Reports are saying the ECB now wants an additional €900 million.
Inflation or a fine for saying no before?
Welcome to the second week of our live blog. Remember you can visit the archive of week 1 at anytime here: http://ektgn.eu/cylevylive