Thursday October 23, 2014 Search
Weather | Athens
24o C
14o 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)  
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Global oil price drop sends local fuel prices back to 2010 levels
Buy big house, become a citizen
Cyprus seeks EU response over Turkey´s EEZ violation
Cyprus is to raise the issue of Turkey’s violation of its exclusive economic zone (EEZ) at Thursday’s European Council meeting after Turkish Prime Minister Ahmet Davutoglu raised the specter...
Thirteen indicted for inmate torture
Thirteen correctional officers and their former warden will stand trial in Serres, northern Greece, over the death of Albanian inmate Ilie Kareli on March 27 at Nigrita Prison. Kareli was tr...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Careful what you wish for
Everyone is in a rush to become prime minister in this country, as if they have not learned a single thing from its political history. While still in opposition, PASOK’s George Papandreou ma...
EDITORIAL
Taking care of our key industry
It’s time to face facts: Tourism is the country’s heavy industry. The sector’s considerable contribution has served as a stabilizing factor for the local economy, essentially placing the cou...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Roberto´s heroics make Kasami´s goal count
2. Athens weighs its LNG and CNG options
3. Greece ranks among global leaders in tourism growth
4. Global oil price drop sends local fuel prices back to 2010 levels
5. Buy big house, become a citizen
6. Cyprus seeks EU response over Turkey´s EEZ violation
more news
Today
This Week
1. At least 11 banks to fail European stress tests, three in Greece, report says
2. Cyprus to block Turkey's EU talks after EEZ violation
3. EU’s Juncker wins Commission-team approval with investment vow
4. Juncker’s EU commission team set for parliamentary green light
5. Taprantzis resigns from privatization agency TAIPED
6. Fallen tree, smashup cause traffic jams in Athens
Today
This Week
1. Istanbul skyscraper casts shadow over Greece's banking ambitions
2. Coalition shooting itself in the foot
3. Greece’s closed society is central to its current malaise
4. Greece must stick to reforms, says Schaeuble
5. The past, present and future of the Greek debt crisis
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.