Tagsdeposits

‘Senior officials ordered early haircut law draft’

By George Psyllides 11/04/13
THE Presidential Palace insisted yesterday that President Nicos Anastasiades had not been aware of instructions to draft legislation regarding a ‘haircut’ on deposits before the decision was actually announced by the Eurogroup.In a statement yesterday, the Palace also suggested that the previous administration knew about a possible haircut, at least since November last year, pointing to a reference in the preliminary bailout deal agreed by former president Demetris Christofias.The matter came to the fore on Monday evening, after Attorney-general Petros Clerides revealed he received instructions from the finance ministry on the morning of March 15 to prepare a bill concerning a haircut on deposits... 9 comments

Nicosia municipality worried it won’t be able to function

27/03/13
THE BAILOUT deal and continued closure of the banks are putting a financial stranglehold on Nicosia municipality and are putting the smooth running of its services at risk, it said yesterday. Nicosia Mayor, Constantinos Yiorkadjis called on the government to exclude municipality accounts from being hit by a levy on deposits.“The majority of the municipality’s deposits are in the Popular Bank and Bank of Cyprus and it is a possibility, that despite our efforts, we will be unable to meet our responsibilities,” he said... 4 comments

BoC depositors face haircut of up to 40 per cent

By Elias Hazou 26/03/13
BANK of Cyprus depositors contributing to the recapitalisation of the island’s once-largest lender may take a hit of anywhere from 30 to 40 per cent, market sources are guessing.A last-minute deal reached in Brussels yesterday saves Cyprus from financial meltdown and keeps its European Central Bank lifeline open. But it’s expected to deal a devastating blow to the island’s financial sector.According to the Eurogroup statement released yesterday, Laiki (Popular Bank) will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors.Laiki will be split into a good bank and a bad bank, and the bad bank will be run down over time, the Eurogroup statement read... 8 comments

Deposit haircut back on the table: reports

20/03/13
THE government ordered banks to stay shut until next week as the proposal to tax deposits – at lower rates – was back on the table to avert a financial meltdown. "We don't have days or weeks, we have only hours to save our country," ruling DISY deputy chairman Averof Neophytou told reporters as crisis talks in Nicosia dragged into the evening. Reports suggested the government may submit a bill tomorrow proposing a haircut on deposits but at lower rates than legislation that was rejected by parliament on Tuesday... 58 comments

Greece close to picking buyer for Cypriot bank units

By Lefteris Papadimas and George Georgiopoulos 20/03/13
 GREECE is close to completing a deal for a Greek takeover of the local units of Cypriot banks, after at least two of the country's biggest lenders showed interest, government officials and bankers said yesterday.Greece has been rushing to wrap up the deal in a bid to protect its battered banking system from the fallout from a plan to impose a levy on bank deposits in Cyprus, but its efforts have been held up by delays in Nicosia in approving the tax.Eurozone finance ministers excluded the Greek branches of Cypriot banks from the controversial tax included in the island's international bailout on condition that those units would be transferred to Greek banks... 9 comments

Cyprus left reeling from haircut

By Stefanos Evripidou 17/03/13
 THE DECISION to impose an unprecedented all-out haircut on Cypriot deposits was a painful one, but it was the only option to avoid bankruptcy of the state, said President Nicos Anastasiades yesterday.  The statement was made after Cyprus woke up to a horrific hangover yesterday morning when it transpired after a marathon ten-hour Eurogroup session that a haircut on all bank deposits would be imposed in Cyprus, along with an increase in corporate tax and a doubling of the tax on interest earned from savings... 144 comments

Money will be cut from accounts by Tuesday morning

By Elias Hazou 17/03/13
 THE ONE-OFF levy on bank deposits agreed between Nicosia and international creditors will impact all Cypriot account holders.In addition to Cypriot commercial and co-operative banks, Barclays, Russian Commercial Bank and Societe Generale, among others, would be affected.“As we understand it, anything with credit will be subject to the levy, be it a deposit or current account,” bank sources said.The Cyprus deal means the country’s savers, almost half of whom are believed to be non-resident Russians, are asked to pay up to 10 per cent of their deposits to raise some €5.8 billion for the government.International lenders will put up around €10 billion to help the island pay back its debt... 79 comments

Decision is painful but only one: Anastasiades

16/03/13
 THE solution the government selected was painful but it was the only one on the table, President Nicos Anastasiades said today, as Cyprus found itself before a fait accompli during the Eurogroup meeting. “The decision we selected may be painful but it was the only one that will allow us to go on with our life without adventures,” Anastasiades said in a written statement. “It is a decision that leads to the historic and definitive rescue of our economy... 34 comments

Incredulity at decision gives way to fury

By Annika Breidthardt and Robin Emmott and Michele Kambas 16/03/13
 THE EUROZONE struck a deal on Saturday to hand Cyprus a bailout worth 10 billion euros but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risks of a wider run on savings.The eastern Mediterranean island becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the euro zone for financial help during the region's debt crisis.In a radical departure from previous aid packages - and one that gave rise to incredulity and anger across the country - euro zone finance ministers forced Cyprus' savers to pay up to 10 per cent of their deposits to raise almost 6 billion euros... 58 comments

Savers forced to bear costs in Cyprus bailout

By Annika Breidthardt, Robin Emmott, John O'Donnell and Jan Strupczewski 16/03/13
The eurozone struck a deal on Saturday to hand Cyprus a bailout worth €10 billion, but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risks of a wider bank run. Cyprus becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the euro zone for financial help in the wake of the region's debt crisis. In a radical departure from previous aid packages, eurozone ministers forced Cyprus' savers, almost half of whom are believed to be non-resident Russians, to pay up to 10 per cent of their deposits to raise almost €6 billion... 289 comments
RSS - deposits