Monday September 22, 2014 Search
Weather | Athens
31o C
22o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Anastasiades flies to Brussels to tie up Cyprus bailout

Cypriot President Nicos Anastasiades was expected in Brussels on Sunday in a last-ditch effort to avoid a financial meltdown, with a bailout from the European Union and the island's place in Europe's single currency bloc hanging in the balance.

Facing a Monday evening deadline to avert a collapse of the Cypriot banking system, talks in Nicosia to seal a bailout from the EU and International Monetary Fund broke up late on Saturday without result.

"Negotiations are at a very delicate phase,» the Cypriot government said in a statement. «The situation is very difficult and the deadlines are very tight,» it said.

Anastasiades was due to arrive in Brussels in mid-morning to continue the talks, it said.

The tone of the statement differed sharply from earlier expressions of cautious optimism during days of intense negotiations between Cypriot leaders and officials from the island's «troika» of international lenders, the EU, IMF and European Central Bank.

Cyprus' overgrown banking sector has been crippled by exposure to crisis-hit Greece, and the EU says the east Mediterranean island must raise 5.8 billion euros on its own before it can receive a 10 billion euro bailout.

Without a deal on Monday, the ECB says it will cut off emergency funds to Cypriot banks, spelling certain collapse and potentially pushing the country out of the eurozone.

Finance Ministers of the 17-nation eurozone will meet at 6 pm Greek time on Sunday.

Scrambling to find the funds, officials said Cyprus had conceded to a one-time levy on bank deposits over 100,000 euros, a dramatic U-turn from five days ago when lawmakers angrily threw out a similar proposal as «bank robbery."

A senior Cypriot official said Nicosia had agreed with its lenders on a 20 percent levy over and above 100,000 euros at the island's largest lender, Bank of Cyprus, and four percent on deposits above the same level at other banks.

Finance Minister Michael Sarris spoke of «significant progress» in morning talks, as angry demonstrators outside the finance ministry chanted «resign, resign!"

Cypriot media reports suggested talks were stuck on a demand by the IMF that Bank of Cyprus absorb the good assets of competitor Popular Bank and take on its 9 billion-euro debt to the central bank as well. The reports said the Cypriot government was resisting.

A Cypriot plan to tap pension funds had already been shelved, a senior Cypriot official told Reuters, under opposition from Germany, which had warned the measure might be even more painful for ordinary Cypriots than a deposit levy.

It was also far from certain that a majority of lawmakers would back a revised levy, or whether the government might even try to bypass the assembly.

Ordinary Cypriots have been outraged by the levy and stunned at the pace of the unfolding drama. They elected Anastasiades in February on a mandate to secure a bailout and save banks whose capital was wiped out by investments in Greece, the epicenter of the eurozone debt crisis.

[Reuters]

ekathimerini.com , Sunday March 24, 2013 (10:01)  
Results of probe into 20 Lagarde list names due soon
Police refute reports of Jihadi training
Gov’t drafts plan to secure exit from memorandum
Greek commuters have relatively long wait
ANALYSIS
Pegging reforms to debt relief acts
The government appears determined to walk the road of Portugal by tapping the markets to avoid a third bailout loan from the EU and even show the IMF the door. However, it may trip if talks ...
Demand for diesel boosts total fuel sales
After five years (2009-13) of decline, the fuel market returned to positive territory in June, albeit at the marginal rate of 0.3 percent year-on-year, according to official data, capitalizi...
Inside Business
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system – whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Reds beat Veria to claim league lead
2. Pegging reforms to debt relief acts
3. Demand for diesel boosts total fuel sales
4. Foreign investors not overly concerned about political risk
5. IMF unhappy over social security debt collection
6. Agenda
more news
Today
This Week
1. IMF unhappy over social security debt collection
2. Foreign investors not overly concerned about political risk
3. Demand for diesel boosts total fuel sales
4. Agenda
5. Pegging reforms to debt relief acts
6. ‘Greece can meet its needs on its own’
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. Central Athens traffic restrictions back in force on Monday
3. ‘Greece can meet its needs on its own’
4. Lost in the fog
5. Record sum of new debts to the state in August
6. Democracy under Pressure | Live Streaming
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.