Monday March 2, 2015 Search
Weather | Athens
11o C
6o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Schaeuble: Nicosia did not want bank shareholders to shoulder lenders' losses

Nicosia is reportedly upset by the latest statement of German Finance Minister Wolfgang Schaeuble, who told Welt Am Sonntag that Germany wanted to shareholders of Cypriot banks to shoulder their lenders’ losses, but the Cypriot government refused to accept that.

In his interview with the German Sunday newspaper, Schaeuble left open the possibility of failure in the negotiations between Cyprus and the eurozone and stressed that rules will have to be obeyed.

Cypriot media reported as hostile the “I will not be blackmailed” statement of the German minister to his country’s newspaper, as just a few hours before the crucial Eurogroup meeting on Sunday evening he warned that Cyprus’s eurozone membership depends on the bailout plan it is negotiating with the troika of the European Commission, the European Central Bank and the International Monetary Fund.

“While negotiations are ongoing, I cannot say with certainty whether the eurozone will accept to extend financial assistance to Cyprus. Only if the troika estimates there is a plan which offers a solution to Cyprus’s problems, and which adheres to the rules, will the Eurogroup be able to examine the problem,” said Schaeuble.

“Cypriot officials should have told the truth to their citizens. Our proposal was never about the involvement of depositors [in the bailout]. The German position was identical to the IMF’s: If the two main banks do not have a sustainable model anymore, it is their shareholders who should shoulder the losses. But [Cypriot] officials did not even want to hear about that,” Schaeuble told Welt Am Sonntag.

“At any rate Cyprus has got a tough road ahead of it. And that is not due to European inflexibility, but due to a financial model that is not operative any longer.”

The IMF is said to be insisting on Bank of Cyprus absorbing the healthy part of Cyprus Popular Bank, which BoC has rejected as that would entail 9 billion euros of more loans from the emergency liquidity assistance mechanism of the ECB to burden the island’s biggest lender.

Some sources add that the IMF also wants a break-up of BoC in a good and bad bank.

ekathimerini.com , Sunday March 24, 2013 (11:23)  
Greece to make international protest over Turkey reserving Aegean air space
Spanish PM hits back at Greek accusation of anti-Athens ´axis´
Greece´s lenders skeptical on new bills but focus on funding needs
Lenders to be consulted over collective bargaining
ANALYSIS
Greek debt becoming less sustainable
The agreement between the Greek government and its lenders, which was sanctioned by the Eurogroup last Tuesday, appears to be more of a respite and less of a sea change in the relationship b...
No progress seen in tax administration
Tax evasion loopholes remain wide open in Greece, the monitoring mechanisms are still shackled to political power, and an apparent determination to adhere to all laws and regulations conceal...
Inside Business
SOCCER
Super League to seek way out of impasse
The Super League governing board is convening again on Monday in a bid to overcome the tensions that keeps building up in Greek soccer despite the suspension of action on the field over the ...
BASKETBALL
Spanoulis leads Olympiakos to win over Malaga
A good second half was enough for Olympiakos to get the better of Unicaja Malaga (77-72) and score its seventh win in eight games at the second group stage of the Euroleague on Friday. Playi...
Inside Sports
COMMENTARY
A unionist agenda
Maybe Greece will not experience a credit event, “because it is in no one’s interest,” as Minister of State for Coordinating Government Operations Alekos Flambouraris recently assured. Maybe...
EDITORIAL
The beguiling limelight
Too much media exposure is never a good thing and there is no shortage of newcomers in politics who are beguiled by the limelight. What usually comes after this thrall of publicity is the in...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greece to make international protest over Turkey reserving Aegean air space
2. Super League to seek way out of impasse
3. Greek debt becoming less sustainable
4. No progress seen in tax administration
5. House protection criteria will benefit wealthy borrowers, too
6. Agenda
more news
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. Greece's lenders skeptical on new bills but focus on funding needs
3. Schaeuble softens tone, says Greece 'needs time'
4. Greece to prioritize IMF repayments but wants talks on ECB-held bonds, says Varoufakis
5. Lenders to be consulted over collective bargaining
6. Spanish PM hits back at Greek accusation of anti-Athens 'axis'
Today
This Week
1. Time for Alexis Tsipras to keep his nerve
2. A fierce battle looms
3. The ignorance of the West about the culture of Islam
4. Spain said to lead push to hold Greece to terms as Podemos grows
5. SYRIZA feeling the pain
6. The unlikely winners of Greece's surrender on euro
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.