A senior Cypriot official suggested late on Saturday that his government was not close to an agreement with the troika over a range of measures aimed at securing a 10-billion-euro bailout for his country.
“We are not in touching distance of an agreement,” the official, who preferred to remain anonymous, told the Cyprus News Agency.
According to the news agency, the official said that the impasse was a result of the “inflexible” stance of the International Monetary Fund representative in the troika.
“Every half hour, new demands are made,” the official said.
The comments came after President Nicos Anastasiades held talks with troika representatives and as he met with Cypriot party leaders to discuss the measures his government proposes to adopt, reportedly including a deposit tax.
Just when you thought you knew the rules, the Troika has changed them… (via MNI)
- TROIKA SAID CONDITIONS WORSENED, WANTS BILL TO REFLECT
- TROIKA HIKED CYPRUS CONTRIBUTION TO E6.7 BN VS E5.8 BN:
- *SCHAEUBLE: MARKET SEES EURO-ZONE BETTER PREPARED FOR TURBULENCE
The European Central Bank warned Cyprus Thursday that it has four days to raise €5.6 billion to avoid bankruptcy – or risk losing bailout funds. The government ruled out the unpopular levy on bank funds during Thursday’s Plan B talks.
Cyprus has four days to agree on a new plan to raise funds to avoid bankruptcy, with the European Central Bank warning Thursday it will pull the plug on the country’s banks at the start of next week if no solution is found.
En • limitation daily limit for cash withdrawals
• No early termination of passbooks possible
• Mandatory extension of temporary bound money
• Conversion of Verechnungs accounts in current accounts
• Prohibition of cash Überweiungen
• Restrictions on bank cards, credit cards, pre-paid cards
• Prohibition of cashing checks
• Prohibition of transfers within one and the live database
• No access to credit intermediaries
• restrictions on all transfers
• Any other action by the Central Bank or any other bank deems necessary to maintain public order and security for notwenig
Cyprus and Troika agree to 20% tax on deposits over 100,000 euros at Bank of Cyprus and 4% on deposits held at other banks Cyprus Market‏@russian_market5 min
Can’t wait for @Piersmorgan, @CNN, @FOX, @FT & @BBC to scream “Russia” killed Berezovsky, the greatest “fighter” for democracy in the World.
Cyprus and Troika agree to 20% tax on deposits over 100,000 euros at Bank of Cyprus and 4% on deposits held at other banks – Reuters
See I told yoy. It’s BerezoVsky. @SpiegelPeter: Boris Berezofsky dies on eve of large Russian bank deposits haircut in #Cyprus. Coincidence?Cyprus Market‏@russian_market23 min
Olli Rehn: “There are no longer any optimal solutions available for #Cyprus, only hard choices.”
Russian depositors make up only 28% of Cyprus bank customers.
2. The issues with the Cyprus sovereign have come from the bailout of the banking system.
The banking sector in Cyprus is being portrayed in the mainstream press as a monstrosity of risky banks for Russian mobsters. I think it is important to put it in context:
(a) Banking assets are about 7.1x GDP relative to the EU average of 3.5x GDP and similar to Ireland and Malta.
Luxembourg, by contrast, where Anglo-Saxon firms do their tax arbitrage has banking assets of 21x GDP. So, Cyprus’s exposure is similar to that of an economy that has large financial services sector, but that still has a real economy too. It is not Luxembourg nor the Cayman Islands nor the Bahamas nor the Channel Islands and so on.
(b) Further to this point, 20B of the 70B of deposits are non-EU (aka Russia/CIS) which, while meaningful (28%), hardly dominate the system
(c) The banks are almost 100% deposit funded (something that regulators across the world have been encouraging because deposits tend to be sticky if you take care of them).
Breaking: Cyprus needs much more Money than expected situation is escalating
Cyprus needs a lot more money than expected
The situation in Cyprus is deteriorating dramatically. Anastasiades President is on his way to Brussels for crisis summit. At the same time there is new information on the financial needs. All developments live.
cyprus needs for information of the “world” more money to bail out its banks and the stabilization of its national budget. Not initially agreed 17 billion euros were enough states in the field of negotiations. The exact amount’m not certain. Several people in the area say the troika to the “world” that the increased demand would amount to around two billion euros.
Because the economic data of the island nation could be worse than previously thought, additional billions are needed. One reason for the expansion of the bailout, the distortions caused by the closing of the banks, which has been going on for a week.