Bailout Crisis (Week 2)

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.

Hector OnThisIsland March 31, 201321:28

The time has come. This feed is now Archived.

Click here for
Week 3’s Live Blog


See the list of current and past feeds: http://www.onthisisland.org

Hector OnThisIsland March 31, 201320:25

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/

Hector OnThisIsland March 31, 201313:38

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.

Hector OnThisIsland March 31, 201313:29

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?

Hector OnThisIsland March 29, 201317:44

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.

Hector OnThisIsland March 29, 201317:39

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

Hector OnThisIsland March 29, 201317:38

Ministry of Labour and Social Insurance will reconsider all social transfers and programmes in a bid to alleviate social consequences of this economic crisis.

Hector OnThisIsland March 29, 201317:35

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.

Hector OnThisIsland March 29, 201317:35

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.

Hector OnThisIsland March 29, 201315:57

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. ”

Source: https://bitcointalk.org/index.php?topic=160292.0;topicseen

Hector OnThisIsland March 29, 201314:48

These two pages were supposedly leaked containing the list of people who have had their loan’s cleared.


Note, we cannot guarantee the validity of them, in any way.

Hector OnThisIsland March 28, 201319:23

Capital Controls are expected to be lifted in around a month, according to reports from Financial Minister.

Hector OnThisIsland March 28, 201319:11

….and travelling economy class, it appears. Shocking, but also good, right?

Hector OnThisIsland March 28, 201319:07

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.

Hector OnThisIsland March 28, 201319:01

An alternate view – Cyprus Isn’t Calm, It’s Paralyzed (http://www.businessinsider.com/cyprus-is-paralyzed-not-calm-2013-3)

Hector OnThisIsland March 28, 201318:05

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.

Hector OnThisIsland March 28, 201313:31

It has been announced that Laiki banks will not open due to a technical fault in their systems. More as we get it.

Hector OnThisIsland March 28, 201313:04

Full text of the capital controls decree:

http://www2.onthisisland.com/enforcement-restrictive-measures-transactions-case-emergency-law-2013/2013/03/28/

Peter Malheiro OTI Intern March 28, 201313:01

Queues outside the Laiki Banks as everyone rushes to get into the Bank.

Peter Malheiro OTI Intern March 28, 201311:06

Statement by the European Commission on the capital controls imposed by the Republic of Cyprus –

Peter Malheiro OTI Intern March 28, 201311:00
Hector OnThisIsland March 28, 201302:02

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.

Hector OnThisIsland March 28, 201300:46

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/

Hector OnThisIsland March 28, 201300:44

?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/

Hector OnThisIsland March 28, 201300:22

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!

Hector OnThisIsland March 28, 201300:06

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

Hector OnThisIsland March 27, 201323:27

Over the counter withdrawals will also be capped to 300Euro per account per day.

Hector OnThisIsland March 27, 201323:26
Hector OnThisIsland March 27, 201323:23

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.

http://ektgn.eu/15VJalY

Hector OnThisIsland March 27, 201322:15

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

Hector OnThisIsland March 27, 201322:10

May be unrelated:

But…

Hector OnThisIsland March 27, 201321:10

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.

Hector OnThisIsland March 27, 201321:02

Please stay calm people! :(

Hector OnThisIsland March 27, 201321:00

NOW in Nicosia:

Hector OnThisIsland March 27, 201320:50

Granted that bank workers will NOT go on strike:

Hector OnThisIsland March 27, 201320:31

We must add that… transferring money abroad may only be allowed for full-time residents.

Hector OnThisIsland March 27, 201320:26

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.

Source: http://ektgn.eu/XeVDBV

Hector OnThisIsland March 27, 201320:14

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…

Hector OnThisIsland March 27, 201320:08

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.

Hector OnThisIsland March 27, 201320:05

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.
Hector OnThisIsland March 27, 201315:53

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.

http://www.cyprusupdates.com/2013/03/cheaper-electricity-immediately/

Hector OnThisIsland March 27, 201315:24

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.

Hector OnThisIsland March 27, 201314:35

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.

http://www.reuters.com/article/2013/03/27/us-eni-turkey-cyprus-idUSBRE92Q0DG20130327

Hector OnThisIsland March 27, 201314:21

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)

Ali March 27, 201314:20
Hector OnThisIsland March 27, 201314:12

Sorry!? WHAT!?

Hector OnThisIsland March 27, 201314:11
Hector OnThisIsland March 27, 201314:08

Students and School Goers are demonstrating in Anexartisias street in Limassol. More news and photos as we get them..

Hector OnThisIsland March 27, 201311:13
Hector OnThisIsland March 27, 201310:45

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

Hector OnThisIsland March 27, 201310:45

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.

http://ektgn.eu/ZpsnDN

Hector OnThisIsland March 27, 201310:40

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?

Hector OnThisIsland March 27, 201304:02

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:

http://ektgn.eu/ZpbPM2

Hector OnThisIsland March 26, 201321:00
Hector OnThisIsland March 26, 201320:58

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.

http://www.cyprus-mail.com/cyprus/new-no-uk-pensions-payments-cyprus/20130326

Hector OnThisIsland March 26, 201320:18

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.

Hector OnThisIsland March 26, 201319:22

*Governor of Central Bank of Cyprus
today isn’t our day re: titles of people involved. Sorry!

Hector OnThisIsland March 26, 201319:08

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…

Hector OnThisIsland March 26, 201314:47

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.

Hector OnThisIsland March 26, 201314:46
Hector OnThisIsland March 26, 201314:41

How this restructuring of the Cyprus banks will “work”:

Source: http://ektgn.eu/YBTPC2

Hector OnThisIsland March 26, 201313:45

Just an update on the MoU we recently shared:

Hector OnThisIsland March 26, 201313:44

Some insight into what ‘resolving a bank’ incurs: http://online.wsj.com/article/SB10001424127887323466204578382792664377904.html?mod=wsj_share_tweet

Hector OnThisIsland March 26, 201313:32

“The capital owned by the Church, which was over 100 million euros, has been lost,” the archbishop told reporters.
Source: http://ektgn.eu/15OTJqY

Hector OnThisIsland March 26, 201313:29

Contains sensitive information, not for further distribution

Memorandum of Understanding on Specific
Economic Policy Conditionality

http://ektgn.eu/10aoMug

Hector OnThisIsland March 26, 201313:25

correction: his role was the Chairman of the Bank of Cyprus it appears.

Hector OnThisIsland March 26, 201313:22

BREAKING: Reports coming in that the President of the Bank of Cyprus has resigned with immediate effect.

Hector OnThisIsland March 26, 201313:16

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

Hector OnThisIsland March 26, 201312:56

It’s Tuesday and the protests are growing…
Have a look at this video captured a few moments ago (11:30am) in Nicosia:

Achilleas Kolonas March 26, 201301:07
Hector OnThisIsland March 25, 201322:36

Dear Europe, coming to a friendly bank near you:

Hector OnThisIsland March 25, 201322:32

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

Hector OnThisIsland March 25, 201322:13

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.

Hector OnThisIsland March 25, 201322:11
Hector OnThisIsland March 25, 201322:09
Hector OnThisIsland March 25, 201322:07
Hector OnThisIsland March 25, 201322:05
Hector OnThisIsland March 25, 201322:03

The president is currently giving a speech live on Cypriot TV. We’ll report any important details before getting the transcript translated.

Hector OnThisIsland March 25, 201321:54

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

Hector OnThisIsland March 25, 201321:50

The Euro is Killing Europe http://ektgn.eu/13r3eRH
Agree or Disagree? Sound off in the comments…

Hector OnThisIsland March 25, 201321:39

Laiki and BoC to stay closed until Thursday.

Hector OnThisIsland March 25, 201321:30

ALL BANKS (except Laiki and Bank of Cyprus) will open tomorrow says man at Central Bank of Cyprus to Reuters.

Peter Malheiro OTI Intern March 25, 201321:16
Ali March 25, 201320:53

For those who missed it,

The full press briefing Michalis SARRIS, the Cypriot Minister for Finance, gave the early hours of this morning:

http://ec.europa.eu/avservices/video/player.cfm?ref=I077140&sitelang=en

Peter Malheiro OTI Intern March 25, 201320:34

ECB’s reaction to the agreement on the Cypriot macroeconomic adjustment programme – http://www.ecb.int/press/pr/date/2013/html/pr130325.en.html

Achilleas Kolonas March 25, 201319:42
Achilleas Kolonas March 25, 201318:29

Euro Weakens as Cypriot Lawmaker Nicholas Papadopoulos Considers Currency Exit:

http://www.bloomberg.com/news/2013-03-24/euro-weakens-versus-dollar-as-cyprus-bailout-deadline-approaches.html

Achilleas Kolonas March 25, 201318:27

Cypriots Mourn Collapse of Livelihoods as Bailout Crushes Banks :

http://www.bloomberg.com/news/2013-03-25/cypriots-mourn-collapse-of-livelihoods-as-bailout-crushes-banks.html

Achilleas Kolonas March 25, 201317:40
Achilleas Kolonas March 25, 201317:22
Achilleas Kolonas March 25, 201316:02
Hector OnThisIsland March 25, 201312:31

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/

Peter Malheiro OTI Intern March 25, 201306:08

Bullet Point summary of the Cypriot Bailout Agreement http://www.reuters.com/article/2013/03/25/us-eurozone-cyprus-text-idUSBRE92O02920130325

Peter Malheiro OTI Intern March 25, 201305:55
Peter Malheiro OTI Intern March 25, 201305:48

Summary of the EUROGROUP statement at the Press Conference. http://rt.com/news/cyprus-eu-imf-bailout-764/

Peter Malheiro OTI Intern March 25, 201305:44
Peter Malheiro OTI Intern March 25, 201305:37
Peter Malheiro OTI Intern March 25, 201305:32
Peter Malheiro OTI Intern March 25, 201305:19

“we are not sure when when the cypriot banks wills be open” – Jeroen Dijsselbloem, EUROGROUP

Peter Malheiro OTI Intern March 25, 201305:15
Peter Malheiro OTI Intern March 25, 201305:06

“safeguard all deposits below EUR 100.000 in accordance with EU principles” EUROGROUP STATEMENT 25TH MARCH 2013

Peter Malheiro OTI Intern March 25, 201305:02

“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

Peter Malheiro OTI Intern March 25, 201304:56

BREAKING: OFFICIAL EUROGROUP STATEMENT AND INFORMATION ABOUT THE CYPRUS CRISIS. http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/136487.pdf

Peter Malheiro OTI Intern March 25, 201304:55
Peter Malheiro OTI Intern March 25, 201304:53

“solution better than last week… focused problems which concentrate on the 2 banks.” – Jeroen Dijsselbloem, EUROGROUP

Peter Malheiro OTI Intern March 25, 201304:50
Peter Malheiro OTI Intern March 25, 201304:48
Peter Malheiro OTI Intern March 25, 201304:46

“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

Peter Malheiro OTI Intern March 25, 201304:43
Peter Malheiro OTI Intern March 25, 201304:42

“difficult road to get here but agreement has approval of all parties” Jeroen Dijsselbloem, EUROGROUP

Peter Malheiro OTI Intern March 25, 201304:40

“we’ve put an end of the uncertainly to cyprus and the euro area” Jeroen Dijsselbloem, EUROGROUP

Peter Malheiro OTI Intern March 25, 201304:38

Jeroen Dijsselbloem speaks as we live blog this.

Peter Malheiro OTI Intern March 25, 201304:36

Press conference

Peter Malheiro OTI Intern March 25, 201304:25

Perhaps we’ll finally get to hear of whats going on, in the next few moments!

Peter Malheiro OTI Intern March 25, 201304:15

Asian Stocks rise after EU agrees an aid package for Cyprus.

Hector OnThisIsland March 25, 201304:15
Peter Malheiro OTI Intern March 25, 201303:52

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

Hector OnThisIsland March 25, 201303:29
Hector OnThisIsland March 25, 201303:21

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.

http://uk.reuters.com/article/2013/03/25/uk-eurozone-cyprus-idUKBRE92F07R20130325

Hector OnThisIsland March 25, 201303:10

Do not panic! Let’s wait and see what happens and what is agreed on for sure…

Hector OnThisIsland March 25, 201302:47
Hector OnThisIsland March 25, 201302:46
Hector OnThisIsland March 25, 201302:41
Hector OnThisIsland March 25, 201302:38

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?

Hector OnThisIsland March 25, 201302:36
Hector OnThisIsland March 25, 201302:13

Rumours are that the Eurogroup will reconvene in 15 mins… We’ll let you know. Again.

Hector OnThisIsland March 25, 201302:10
Hector OnThisIsland March 25, 201302:07

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

Hector OnThisIsland March 25, 201301:50
Hector OnThisIsland March 25, 201301:39
Hector OnThisIsland March 25, 201301:30
Hector OnThisIsland March 25, 201301:29
Hector OnThisIsland March 25, 201301:24
Hector OnThisIsland March 25, 201301:21

Cyprus’ bailout talks deadlocked over banks

http://news.yahoo.com/cyprus-bailout-talks-deadlocked-over-banks-215009054–finance.html

Hector OnThisIsland March 25, 201301:12
Hector OnThisIsland March 25, 201300:40

Yet, some people are claiming the Eurogroup meeting is still going to happen, and soon. What a mess.

Hector OnThisIsland March 25, 201300:39
Hector OnThisIsland March 25, 201300:38
Ali March 25, 201300:20

Some clarification:

“What started is a briefing for the waiting ministers only”

Hector OnThisIsland March 25, 201300:15

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!!

Hector OnThisIsland March 25, 201300:13
Ali March 25, 201300:12
Hector OnThisIsland March 24, 201323:41
Hector OnThisIsland March 24, 201323:28
Ali March 24, 201323:22
Ali March 24, 201323:05

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

Ali March 24, 201322:52

Some words of encouragement from the Finnish Minister of European Affairs:

Hector OnThisIsland March 24, 201322:39
Hector OnThisIsland March 24, 201322:37

Another delay has been announced… This is going to be a long night isnt it.

Ali March 24, 201322:33
Ali March 24, 201322:19

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.

Hector OnThisIsland March 24, 201322:18
Hector OnThisIsland March 24, 201321:53

There may be further delays to the start of the eurogroup meeting…

Hector OnThisIsland March 24, 201321:41

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.

Hector OnThisIsland March 24, 201321:34

Well said!

Hector OnThisIsland March 24, 201321:31
Hector OnThisIsland March 24, 201321:17

UNCONFIRMED:

Hector OnThisIsland March 24, 201321:02

Remember: if the page goes ‘offline’ just refresh… we can’t really use our cards to upgrade the service much more right now… sorry!

Ali March 24, 201320:58

Few words from the President:

Hector OnThisIsland March 24, 201320:58

Some Cypriots in Brussels have taken to the streets…

Hector OnThisIsland March 24, 201320:54

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…

Hector OnThisIsland March 24, 201320:47
Hector OnThisIsland March 24, 201320:43

The meeting hasn’t started yet and the fingers are being pointed…

Hector OnThisIsland March 24, 201320:32
Hector OnThisIsland March 24, 201320:31

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

Hector OnThisIsland March 24, 201320:30

Anastasiades is reportedly still in his lunch meeting in Brussels. Possibly the reason for the delay?

Ali March 24, 201320:23

Looks like the start of meeting might be delayed

Hector OnThisIsland March 24, 201320:18

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.”

http://ektgn.eu/ZlqcBa

Hector OnThisIsland March 24, 201320:02
Hector OnThisIsland March 24, 201319:57
Hector OnThisIsland March 24, 201319:57

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.

Hector OnThisIsland March 24, 201319:55
Hector OnThisIsland March 24, 201319:31
Hector OnThisIsland March 24, 201319:23
Hector OnThisIsland March 24, 201319:21
Hector OnThisIsland March 24, 201319:13

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!

Hector OnThisIsland March 24, 201319:10

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

Read more on Theo’s thought here: http://www.thesun.co.uk/sol/homepage/news/politics/4857350/Warning-from-star-of-Dragons-Den-on-crisis-destroying-his-homeland-Cyprus.html#ixzz2OTRgpx4p

Hector OnThisIsland March 24, 201318:55

Running with a smile! Many many many people took part in the Limassol Marathon today. Things carry on and people will keep moving…

http://www2.onthisisland.com/limassol-marathon-2013-live-blog/2013/02/15/

Hector OnThisIsland March 24, 201318:29

Turkish officials have even suggested that if the Greek Cypriot administration insists on grabbing these reserves for itself, then Turkey will intervene militarily.

Read more: http://www.al-monitor.com/pulse/originals/2013/03/cyprus-gas-reserves-negotiation-moscow-concern-turkey.html#ixzz2OTIOqCrW

Hector OnThisIsland March 24, 201318:19
Hector OnThisIsland March 24, 201317:58

Photo from yesterday’s march in Nicosia. Peaceful, but in numbers.

Via : https://www.facebook.com/gpoullos

Hector OnThisIsland March 24, 201317:42

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.

Source: http://ektgn.eu/16RtKm5

Hector OnThisIsland March 24, 201317:29

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…

Hector OnThisIsland March 24, 201317:14

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

http://ektgn.eu/16Rrc7u

Hector OnThisIsland March 24, 201316:44
Hector OnThisIsland March 24, 201316:39
Hector OnThisIsland March 24, 201316:36

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.

Hector OnThisIsland March 24, 201316:21

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.


Source: http://ektgn.eu/16Rm17I

Hector OnThisIsland March 24, 201316:17

Report saying that Troika could be asking for an additional €2bn from Cyprus http://ektgn.eu/16RlF0P

Hector OnThisIsland March 24, 201316:09

President Anastasiades and his team have arrived at the ‘mega meeting’ in Brussels. More as we get it…

Hector OnThisIsland March 24, 201316:07

Wish we could start with better news :(

Ali March 24, 201312:32

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.”

– Ekathimerini

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/03/2013_489613

Ali March 24, 201302:35

Looks like the weather in Brussels isn’t helping now:

Ali March 24, 201302:10

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.

http://translate.google.com/translate?hl=en&sl=de&tl=en&u=http%3A%2F%2Fwww.n-tv.de%2Fpolitik%2FZockte-Brandenburg-in-Zypern-article10352531.html

Hector OnThisIsland March 24, 201302:09

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!

Ali March 24, 201301:21

Nicosia official says Cyprus not in reach of deal with troika, blames IMF.

(Ekathimerini)

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_23/03/2013_489584

Hector OnThisIsland March 24, 201300:45

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.

Achilleas Kolonas March 23, 201323:18
Achilleas Kolonas March 23, 201322:12
Achilleas Kolonas March 23, 201321:58

For those who study abroad here is some news for you lot:

Achilleas Kolonas March 23, 201321:56
Achilleas Kolonas March 23, 201321:33

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..

Achilleas Kolonas March 23, 201321:27

BREAKING NEWS: This is what has supposedly been agreed:

Achilleas Kolonas March 23, 201321:24
Achilleas Kolonas March 23, 201320:36

with the banks suppose to be re-opening on Tuesday this could cause even more problems:

Achilleas Kolonas March 23, 201320:25
Peter Malheiro OTI Intern March 23, 201319:39

LIVE Video feed from the Wall Street Journal “Several hundred bank workers outside #Cyprus presidential palace protesting closure plans.”

http://stream.wsj.com/story/world-stream/SS-2-44156/SS-2-196011/

Peter Malheiro OTI Intern March 23, 201319:31

CORRECTION: EuroGroup Meeting confirmed. Sunday 24th 2013 1800 CET (1700 GMT)

Peter Malheiro OTI Intern March 23, 201319:29

Coincidence?

Peter Malheiro OTI Intern March 23, 201319:26

EuroGroup Meeting confirmed. Sunday 24th 2013 1800 GMT

Peter Malheiro OTI Intern March 23, 201319:22
Achilleas Kolonas March 23, 201318:52

To put it into perspective:

Achilleas Kolonas March 23, 201318:41

Rumour has it Anastasiades will not be going Brussels for the time being

Achilleas Kolonas March 23, 201318:33

Protest currently taking place in Nicosia via: https://twitter.com/MatinaStevis/status/315482181592047617/photo/1

Peter Malheiro OTI Intern March 23, 201317:57

The Telegraph UK

Achilleas Kolonas March 23, 201317:50
Peter Malheiro OTI Intern March 23, 201317:48

Bank employees marching the streets of Nicosia

Peter Malheiro OTI Intern March 23, 201317:46

“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.”

Peter Malheiro OTI Intern March 23, 201317:44

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

Achilleas Kolonas March 23, 201317:27

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.

Achilleas Kolonas March 23, 201317:01

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

Achilleas Kolonas March 23, 201317:00
Achilleas Kolonas March 23, 201316:54

Quick recap on what one analyst thinks will happen if Cyprus does collapse : http://bigstory.ap.org/article/what-happens-if-cyprus-collapses

Achilleas Kolonas March 23, 201316:40

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

Achilleas Kolonas March 23, 201316:18
Achilleas Kolonas March 23, 201315:49
Achilleas Kolonas March 23, 201315:14

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

Hector OnThisIsland March 23, 201312:30

A pretty scary look at the possible outcomes of a Cyprus economic collapse. http://news.yahoo.com/happens-cyprus-collapses-083201181–finance.html

Hector OnThisIsland March 23, 201311:11

Cypriot president and party leaders are on the way to Brussels. More as we get it.

Hector OnThisIsland March 23, 201310:57

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.

Hector OnThisIsland March 23, 201304:08

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!

Achilleas Kolonas March 23, 201304:01
Hector OnThisIsland March 23, 201303:37

Russians flock to troubled Cyprus in attempt to protect finances

http://www.guardian.co.uk/world/2013/mar/22/russians-flock-to-cyprus?CMP=twt_gu

Peter Malheiro OTI Intern March 23, 201303:35

Nigel Farage for RT News: “EU wants to steal money from Cypriots bank accounts” http://www.youtube.com/watch?v=JMf_KwQ2Xlk

Peter Malheiro OTI Intern March 23, 201303:22

Peter Malheiro OTI Intern March 23, 201303:08
Hector OnThisIsland March 23, 201302:12

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.

Hector OnThisIsland March 23, 201301:20
Hector OnThisIsland March 23, 201301:16

MANY are expecting a haircut announcement tomorrow….

Hector OnThisIsland March 23, 201301:12

It appears an AEL fan club in the UK is aiming to help out some stranded students:

Hector OnThisIsland March 23, 201301:10

Cyprus returns to deposit tax in last ditch effort to avert collapse

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_22/03/2013_489493

Hector OnThisIsland March 23, 201301:08

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.

Hector OnThisIsland March 23, 201301:08

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.

Hector OnThisIsland March 23, 201301:06
Hector OnThisIsland March 23, 201301:03

As laws are passed, Twitter is ablaze with fury over the ability for accounts to be ‘raided at will’.

Hector OnThisIsland March 23, 201301:01

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 :)

Hector OnThisIsland March 23, 201301:00

Struggling Cyprus could look to Iceland as example for recovery – http://rt.com/op-edge/cyprus-iceland-example-recovery-574/

Hector OnThisIsland March 23, 201300:50
Hector OnThisIsland March 23, 201300:50

Law for creation of Solidarity fund approved.

Hector OnThisIsland March 23, 201300:49
Hector OnThisIsland March 23, 201300:48

The parliament is busy voting and passing laws… we’re translating as fast as we can.

Hector OnThisIsland March 23, 201300:37

According to CNN Cyprus to Issue Long-term Bonds Linked to Natural Gas

Hector OnThisIsland March 23, 201300:30

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

Hector OnThisIsland March 23, 201300:21

Capital control laws passed

http://www.zerohedge.com/news/2013-03-22/cyprus-officially-passes-capital-controls-law

Hector OnThisIsland March 23, 201300:18

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’

Hector OnThisIsland March 22, 201322:49
Hector OnThisIsland March 22, 201322:39

Sad but kinda true…

Hector OnThisIsland March 22, 201322:29
Hector OnThisIsland March 22, 201322:25
Hector OnThisIsland March 22, 201322:23
Hector OnThisIsland March 22, 201322:19
Hector OnThisIsland March 22, 201322:17

Reports are saying the ECB now wants an additional €900 million.

Inflation or a fine for saying no before?

Hector OnThisIsland March 22, 201322:11

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

Hector OnThisIsland March 22, 201322:10
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