Sunday, March 24, 2013

Cyprus Sunday

by Bill McBride on 3/24/2013 09:50:00 AM

Updates at 1:45 PM ET: Meeting now scheduled for 3 PM ET. Cyprus central bank is now limiting cash withdrawals to 100 euros per day.

Cypriot President Nicos Anastasiades is in Brussels to hold talks with the "troika" and the Eurogroup meeting is scheduled to start at 1700 GMT (1 PM ET). Of course these meetings always start and run late ...

From the NY Times: As Deadline Nears, Cyprus Scrambles to Devise a Bailout

The Cypriot president, Nicos Anastasiades, flew to Brussels on Sunday after mapping out a tentative outline of a deal late Saturday with representatives of the troika of negotiators involved in the bailout: the European Central Bank, the European Commission and the International Monetary Fund.

His first order of business was a meeting with Mario Draghi, the president of the central bank; Christine Lagarde, the managing director of the monetary fund; and José Manuel Barroso, the president of the commission. Herman Van Rompuy, the president of the European Council, which represents European Union leaders, was expected to preside over the meeting.

Mr. Anastasiades had also briefed Cypriot political leaders on the outline...

The revised bailout terms now under discussion would assess a one-time tax of 20 percent on deposits above 100,000 euros at one of the nation’s biggest banks, the Bank of Cyprus, which has the largest number of savings accounts on the island. ...

A separate tax of 4 percent would be assessed on uninsured deposits at all other banks, including the 26 foreign banks that operate in Cyprus.

Under the plan, savings under 100,000 euros would not be touched ...
From the CyprusMail: Cyprus seeks 11th-hour deal to avert financial collapse
Without a deal on Monday, the ECB says it will cut off emergency funds to Cypriot banks, spelling certain collapse and potentially pushing the country out of the euro zone.

Finance Ministers of the 17-nation euro zone will meet at 1700 GMT Sunday. ...
A senior Cypriot official said Nicosia had agreed with its lenders on a 20 per cent levy over and above €100,000 at the island's largest lender, Bank of Cyprus, and four per cent on deposits above the same level at other banks.

Media reports suggested talks were stuck on a demand by the IMF that Bank of Cyprus absorb the good assets of competitor Popular Bank and take on its nine billion euro debt to the central bank as well.

Last 10 Posts