Arab Today, arab today cyprus scrambles to find cash after mps snub bailout
Last Updated : GMT 09:15:11
Arab Today, arab today
Arab Today, arab today

Cyprus scrambles to find cash after MPs snub bailout

Arab Today, arab today

Arab Today, arab today Cyprus scrambles to find cash after MPs snub bailout

Nicosia - AFP

Debt-hit Cyprus was scrambling Wednesday to secure funding vital to an international bailout after MPs rejected the terms of an EU deal, tapping Russia, the church and state institutions for cash. With banks closed and fears growing of a forced eurozone exit, President Nicos Anastasiades huddled with party leaders and financial experts trying to track a way out of the island\'s worst crisis since the 1974 Turkish invasion. The meeting comes a day after lawmakers flatly rejected a highly unpopular measure that would have slapped a one-time levy of up to 9.9 percent on bank deposits as a condition for an EU-led 10-billion-euro ($13-billion) loan. The 5.8 billion euros the proposal would have raised was crucial to Nicosia getting the full rescue. With that now in doubt, Cyprus must now find other ways to raise cash to repay its debts. Caught between the demands of its eurozone lenders and traditional ally Russia, the government is treading a very fine line, and one reason being given for parliament\'s refusal to accept the deposits levy was that Moscow had to be placated. Russians -- many of them wealthy tycoons seeking to avoid taxes back home -- hold between a third and half of all Cypriot deposits and have $31 billion in private and corporate cash buried in the island\'s teetering banks. Any levy on these holdings could have sparked a capital flight that would probably have collapsed the banking sector. Cyprus\'s banks were left heavily exposed to the Greek debt crisis, and their failure would leave the country on the verge of bankruptcy and in danger of going into default. Illustrating the balancing act Anastasiades is being forced to perform, he telephoned both German Chancellor Merkel and Russian President Vladimir Putin on Tuesday night after parliament angrily vetoed the bailout deal. The Kremlin said that Putin and Anastasiades had discussed what Russia could do to help. By that time the Cyprus president had already sent his finance minister, Michalis Sarris, to Moscow to woo Russian assistance and seek an easing of the terms of a 2.5-billion-euro loan that Moscow gave Nicosia in 2011. Sarris said on Wednesday the Moscow talks had started well. \"We have a very good beginning. We had a very good, honest and open discussion,\" Sarris told reporters after meeting his Russian counterpart Anton Siluanov. But he stressed that he had so far received no offer from Russia\'s natural gas giant Gazprom to infuse Cyprus\'s banks with cash in exchange for a stake in its offshore energy fields. The option has been mentioned as one possible way Moscow could help the debt-laden island. Analysts said that while Tuesday\'s events raised concerns Cyprus could exit the eurozone, they soothed fears that such levies could be introduced in other troubled eurozone countries. Stephen Wood, chief market strategist at Russell Investments, told Dow Jones Newswires: \"We\'re watching very closely, but at present we don\'t think Cyprus is a game-changer in Europe. \"We\'re looking at financial-system indicators in Italy, Spain, Portugal, Greece and also bank data to see if there\'s a run or even a jog on banks in those countries. We don\'t see that just yet.\" Wednesday\'s emergency meeting in Nicosia were also being attended by Central Bank governor Panicos Demetriades and a member of the troika of the European Union, European Central Bank and International Monetary Fund, state television said. It said one option being looked at to raise the 5.8 billion euros was the nationalisation of the provident funds of state and semi-state institutions, which could raise around three billion euros. Another option was a shrinking of the banking sector, possibly merging the island\'s two biggest banks into one, so the amount of recapitalisation needed would be lower. The head of the powerful Orthodox Church in Cyprus, Archbishop Chrysostomos II, offered to help bail the country out by putting church assets at the government\'s disposal. \"The entire property of the church is at the disposal of this country to prevent the economy from collapsing,\" he said after meeting Anastasiades. The church is the largest landowner on the island and also has stakes in businesses including the country\'s Hellenic Bank, with total assets estimated to run into tens of millions of euros. Fearing a run on accounts, Cyprus has shut its banks until at least Thursday, but there was no certainty the institutions would open this week at all.

arabstoday
arabstoday

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 scrambles to find cash after mps snub bailout Arab Today, arab today cyprus scrambles to find cash after mps snub bailout

 



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 scrambles to find cash after mps snub bailout Arab Today, arab today cyprus scrambles to find cash after mps snub bailout

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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