Wednesday Jul 30, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus under pressure after new downgrade

Nicosia came under mounting domestic and European pressure on Tuesday to push through an austerity package in order to obtain aid for its banking system and to keep payments from the government flowing.

The Cypriot government’s room for maneuver narrowed when Moody’s Investors Service downgraded its credit rating and euro-area finance ministers pressed for a rapid conclusion of more than three months of bailout negotiations.

“Should the government continue with its procrastination and lack of resolve, we risk a payment stoppage and a collapse of the banks that would spark a domino effect for the economy,” Nicholas Papadopoulos, a lawmaker from the center-right DIKO party who heads the Parliament’s finance committee, said by telephone on Tuesday.

Cyprus in late June became the fifth euro-area nation to request a financial rescue since a 2010 bailout of Greece.

The government is in talks with the European Commission, European Central Bank and the International Monetary Fund, the so-called troika, to fix the size of the bailout, which will encompass banks weakened by their exposure to the Greek economy as well as the public sector.

The government estimates that the country’s banks, which lost more than 4 billion euros in Greece’s debt restructuring, need 5 billion euros of fresh capital, three people with direct knowledge of the matter said last week.

The troika puts lenders’ needs at about 10 billion euros, they said.

Moody’s said its cut in Cyprus’s bond rating to B3 from Ba3 with a negative outlook reflected the “profound difficulties” in the country’s banking sector, reeling from the European-imposed write-down of Greek debt.

Finance Minister Vassos Shiarly (photo) disputed the troika’s calculation of Cypriot banks’ recapitalization requirements.

“We have a difference of opinion as to the approach used,” he said in an interview on Tuesday in Luxembourg.

“The troika have their own way of computing their figures. They are not wrong; they are just working on the conservative side, on a safe approach because they might need more.”

In aid talks under way since June 25, Cyprus has offered to spread 1.02 billion euros in budget reductions over four years, making shallower cuts than the 975 million euros in three years sought by the troika.

European governments are trying to piece Cyprus into a matrix of aid programs that now cover Greece, Ireland, Portugal and Spain.

Luxembourg Prime Minister Jean-Claude Juncker, who heads meetings of euro-area finance ministers, said on Monday the government is not moving fast enough.

“We have the impression at the moment that the Cypriots aren’t reacting to this adequately,” Juncker said.

“We unanimously felt there is a need to accelerate work.”

[Bloomberg]

ekathimerini.com , Tuesday October 9, 2012 (22:53)  
Six firms submit bids to lease Vouliagmeni beach
IMF´s Lagarde not sure yet about debt relief for Greece
Deals reached for twin plot on Afandou, for 42 million
More delays and red tape for companies’ tax rebates
SYRIZA, DIMAR representatives to hold talks Thursday
Following up a series of letters exchanged between main SYRIZA opposition leader Alexis Tsipras and his Democratic Left (DIMAR) counterpart Fotis Kouvelis, representatives of the two parties...
Two of four suspects in Nea Manolada strawberry farm shooting convicted
Only two of the four men on trial for shooting and injuring 28 migrant workers at a strawberry farm in Nea Manolada last year were convicted by a court in Patra on Wednesday. The court clear...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
EDITORIAL
Populism eating up education
The fact that the issue of education is not topping the list of priorities for the current coalition government, but instead, has been left in the hands of incapable politicians is utterly i...
COMMENTARY
A valued but mistreated professional
I did not know much on a personal level about Dimitris Stefanou, Greece’s former administrative reform general secretary who died earlier this week at the age of 46. I did, however, have a s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. SYRIZA, DIMAR representatives to hold talks Thursday
2. Two of four suspects in Nea Manolada strawberry farm shooting convicted
3. Six firms submit bids to lease Vouliagmeni beach
4. IMF´s Lagarde not sure yet about debt relief for Greece
5. EU Commissioner Damanaki unlikely to return to Greek politics
6. Police arrest one, seek another three over counterfeit goods
more news
Today
This Week
1. Coalition submits new proposals for Greek coastline
2. IMF's Lagarde not sure yet about debt relief for Greece
3. Police arrest one, seek another three over counterfeit goods
4. Six firms submit bids to lease Vouliagmeni beach
5. EU Commissioner Damanaki unlikely to return to Greek politics
6. Two of four suspects in Nea Manolada strawberry farm shooting convicted
Today
This Week
1. Unequal after death
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
4. Quadriplegic woman on life support 'dies due to unpaid power bills'
5. Front-line threats
6. Defense Minister Avramopoulos to represent Greece at European Commission
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.