Arab Today, arab today cyprus set to hike corporate tax to win eu bailout
Last Updated : GMT 09:50:34
Arab Today, arab today
Arab Today, arab today

Cyprus set to hike corporate tax to win EU bailout

Arab Today, arab today

Arab Today, arab today Cyprus set to hike corporate tax to win EU bailout

Nicosia - AFP

After nine months of stop-start negotiations, cash-strapped Cyprus is on the verge of securing an EU bailout but analysts say it will come at a hefty price. Eurozone finance ministers are to meet on Friday after a two-day EU summit in Brussels, to thrash out a bailout plan for the Mediterranean holiday island that will hopefully conclude marathon talks. \"The longer this has gone on, the more drastic the proposed measures have become, the craziest idea being a haircut on deposits, which would only ensure that EU taxpayers never get their money back,\" analyst Fiona Mullen told AFP. The government has dismissed any suggestion of a haircut on bank deposits to help pay for a rescue package estimated at 17 billion euros. But in order to seal an agreement, the newly elected government has had to cross red lines on the island\'s low corporate tax rate and on the sale of profitable state utilities. \"It looks like it will have to accept an increase in the corporate tax rate to 12.5 percent, which until now was the lowest in the eurozone at 10 percent,\" said Mullen.\"And of course privatisation used to be taboo, but they will not get a bailout without it.\" She said Cyprus may also have to accept more \"damaging taxes\", such as the financial transaction tax, which will hit the big foreign exchange trading companies. Cyprus requested financial assistance from the EU in June last year after its two largest banks -- Bank of Cyprus and Popular Bank -- sought state aid following massive losses estimated at €4.5 billion resulting from a Greek debt haircut. Nicosia has argued that its eagerness to support Greece and show eurozone solidarity has been its undoing. With the island\'s banks being the most exposed to Greek debt, Cyprus simply could not afford to agree a 75 percent write-down of its bond holdings. And because state finances had deteriorated, the government was unable to access international financial markets to assist its own banks and so applied for aid.As part of a rescue package reached last year, Greece obtained a partial reduction in debt owed to private creditors, who included Cypriot banks. Cypriot President Nicos Anastasiades has pushed for this to be taken into account in talks with international creditors on the island\'s own bailout, which has been earmarked for the end of March. \"The consequences of the haircut of Greek bonds was not handled on our side in the best possible manner within European institutions,\" Anastasiades told To Vima newspaper over the weekend, referring to the administration of his communist predecessor Demetris Christofias. Cyprus is the fifth financial rescue following those for Greece, Ireland, Portugal, and for Spanish banks, but has proved to be the most difficult to conclude. The Christofias government tried to avoid the harsh terms of an EU bailout by asking Russia and China for bilateral loans. But as the amount required soared, it became clear that the troika -- the European Commission, the European Central Bank and the International Monetary Fund -- was the only institution with the resources to help. The mooted 17-billion euro ($22.2 billion) bailout figure is roughly the same as the island\'s total economic output, and would increase debt to more than 140 percent of gross domestic product (GDP), a level considered unmanageable in the long run. The island\'s Simerini newspaper said Cyprus had been told to find seven billion euros of the 17 billion euros it needs because lending the government more than 10 billion would make the debt unserviceable.To help fast-track an agreement, Cyprus has agreed to submit its banks to independent scrutiny to allay suspicions of money-laundering. The concerns stem from allegations that the island is a favoured destination for the ill-gotten gains of Russian oligarchs. An independent audit is expected to begin next week and be completed before the end of March as requested by eurogroup finance ministers. Following the eurozone summit, Finance Minister Michalis Sarris is to fly to Moscow for talks on Monday. On the agenda will be extending a 2.5 billion euro Russian loan payment due in 2016 and discussing how Russia could contribute to the bailout package, state radio reported.

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 set to hike corporate tax to win eu bailout Arab Today, arab today cyprus set to hike corporate tax to win eu bailout

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
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 Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
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 Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
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