Arab Today, arab today cyprus looking to eu for best aid terms
Last Updated : GMT 06:26:18
Arab Today, arab today
Arab Today, arab today

Cyprus looking to EU for best aid terms

Arab Today, arab today

Arab Today, arab today Cyprus looking to EU for best aid terms

Nicosia - Agencies

Cyprus is looking to Europe and elsewhere for the best possible bailout terms, its central bank chief said Wednesday, as local media reported the eurozone’s third-smallest economy would spurn its EU partners to borrow from Russia or China. Speculation is mounting that an international bailout for Cyprus is imminent, but its communist government has kept markets guessing on whether it will resort to the EU bailout mechanism, or turn to Russia – a close ally – or China. “If we eventually apply, because it is not a given that we will apply [and] there are also other options, we will seek the best possible terms for the economy,” said Panicos Demetriades, the governor of Cyprus’ central bank. The eurozone minnow, shut out of capital markets for more than a year, must find the equivalent of 10 percent of its gross domestic product by June 30 to recapitalize Cyprus Popular Bank if no private investor comes forward. Bilateral lending, which the Cypriot finance minister has repeatedly described as “not the preferred option,” is returning to prominence as a likely scenario. Russia, which bailed Cyprus out last year and is an important business partner, was back in the frame as a potential lender again, newspapers reported. Haravghi, the mouthpiece of the ruling AKEL Communist party and one which generally reflects government thinking, said attempts were under way to borrow from a third country with “more favorable terms.” It did not name that country, but four other newspapers suggested Russia Wednesday. Cyprus has repeatedly displayed caution about strings which may be attached to a bailout from EU partners. Its primary concern is that its cherished 10-percent corporate tax rate could be compromised. Austerity measures similar to those imposed on other bailed-out states, including Greece, would also force the government into unpopular spending cuts ahead of a general election due by February 2013. Asked whether the prospect of bilateral lending was distant, Finance Minister Vassos Shiarly told state TV in an interview Tuesday night: “I would say not.” Nonetheless, a resort to bilateral lending rather than EU partners would raise eyebrows within the bloc, particularly as Cyprus is poised to assume the European Union’s rotating presidency on July 1. Economist Stelios Platis said the government may be dangling the option of bilateral lending as leverage to potentially extract better bailout terms from the EU. “They want to exhaust all options and time to find alternative means of finance. In my view it’s an ill-conceived idea that this can be negotiated. It’s [the] wrong strategy, you can’t use this as leverage,” Platis added. The timing of any application for aid is also unclear. But in the television interview, Shiarly reiterated earlier comments that the island would not “wait until the last day” to take action to prop up Popular, either through bilateral lending or by resorting to the European Financial Support Facility. “It’s like plucking daisies, wondering ‘will we get in to the mechanism, we won’t, we will, we won’t,’” said George Perdikis, an MP for the Green’s party. Popular and the other main lender, Bank of Cyprus, were hit heavily by the writedown on Greek debt, which was restructured as part of Athens’ second EU/IMF bailout deal. Bank of Cyprus has almost completed its recapitalization privately. Moody’s Investors Service cut its credit rating on Bank of Cyprus Tuesday and put Popular on review for a downgrade, citing the increased risks of a possible Greek exit from the eurozone. Cyprus’ third bank, Hellenic, was also downgraded.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus looking to eu for best aid terms Arab Today, arab today cyprus looking to eu for best aid terms

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday