Arab Today, arab today cyprus bailout cost jumps in threat to teetering economy
Last Updated : GMT 01:16:23
Arab Today, arab today
Arab Today, arab today

Cyprus bailout cost jumps in threat to teetering economy

Arab Today, arab today

Arab Today, arab today Cyprus bailout cost jumps in threat to teetering economy

Nicosia - AFP

Cyprus said Thursday the cost of its EU-IMF bailout has surged to 23 billion euros ($30 billion), putting the teetering economy in danger of collapse and further endangering big bank deposits. \"It\'s a fact the memorandum of November talked about 17.5 billion (euros) in financing needs. And it has emerged this figure has become 23 billion,\" said government spokesman Christos Stylianides. That means Cyprus will now have to find 6.0 billion euros more than the 7.0 billion euros mooted in a preliminary agreement reached on March 25 in order to secure an EU-IMF contribution of 10 billion euros. Under the preliminary terms of a bailout agreed last month, Cyprus will drastically reduce the size of its bloated banking sector, raise taxes, downsize the public sector workforce and privatise some firms. Stylianides was commenting on a new assessment of Cyprus\'s financing needs that eurozone finance ministers, including that of the island, are to discuss in Dublin from Friday in a bid to reach a final deal. A source close to the talks said \"the financing needs of Cyprus have evolved. Notably, while the restructuring of the financial sector will now be very largely financed through private means, the projected fiscal needs of the state have increased as a result of the deeper-than-expected recession.\" A copy of the assessment obtained by AFP says the European Commission and European Central Bank now estimate that \"Cyprus\'s gross financing needs amount to about (23 billion euros) over the three-year programme horizon\" through the first quarter of 2016.  \"This includes needs for the recapitalisation of the banking sector, the redemption of maturing medium- and long-term debt, including loans and fiscal needs.\" Under the March deal, failed lender Laiki Bank is being wound up and its healthy assets transferred to the Bank of Cyprus.To cover part of Cyprus\'s revenue-raising needs, there was talk that customers with deposits of more than 100,000 euros at Bank of Cyprus could lose up to 60 percent of those holdings. That figure could now be even higher. Those in Laiki will have to wait years to see any of their money over 100,000 euros. A further 600 million euros would be raised through a corporate tax rise, 400 million euros through the sale of gold reserves, and further funding from privatisation and a roll-over of debt held by Cypriot investors. However, when asked about a gold sale central bank spokeswoman Aliki Stylianou told AFP: \"There is no such issue at the moment.\" Jonathan Loynes, chief European economist at Capital Economics in London, noted on Thursday that the \"biggest burden of the increase in the bailout will fall on depositors and bank bond-holders, whose combined contribution will rise from an expected 5.8 billion euros to 10.6 billion euros.\" Cyprus is already in recession, with unemployment at around 15 percent and expected to grow sharply this year and next. The eurozone Cyprus assessment is forecasting gross domestic product to plunge by 8.7 percent in 2013, led by a whopping 13.9 percent drop in domestic demand, and to fall another 3.9 percent next year. Loynes warned that \"the sheer size of the increase has underlined the extent of the enormous challenges facing Cyprus itself\". He said the forecast for Cyprus returning to real GDP growth of 1.9 percent in 2016 and the budget to balance \"incorporate a considerable degree of optimism\" given uncertainties over the future health of the banking sector and the impact of the planned fiscal tightening. \"This could force Cyprus to undertake further fiscal tightening to meet its borrowing targets and casting doubt over the sustainability of the bail-out.\"

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 bailout cost jumps in threat to teetering economy Arab Today, arab today cyprus bailout cost jumps in threat to teetering economy

 



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

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU
View News in Arabic - Business: نفط وبتروكيماويات
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