Friday August 22, 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)  
Report: Greek banks sturdily positioned
Economy stunted by property tax demands, report says
Primary surplus exceeds January-July target figure
Ryanair in Cyprus Airways talks
KEELPNO blames stomach bug for sick tourists on Rhodes
The Center for Disease Control and Prevention (KEELPNO) on Thursday contradicted foreign press reports according to which hundreds of tourists suffered food poisoning at a hotel on Rhodes ea...
KEPs to issue new and replacement driving licenses
Greeks and foreigners living in Greece will no longer have to queue up at the Transport Ministry to get new or replacement driving licenses as the government decided yesterday that Citizen S...
Inside News
SOCCER
Greek soccer officials in refereeing probe to face prosecutor on Sept 15
Eleven soccer officials were on Wednesday given until September 15 before they have to face prosecutor Aristidis Koreas, who is investigating allegations that the draws to decide which match...
ATHLETICS
Long jumper Tsatoumas takes Greece´s second silver at European Championships
Greece won its second medal at the European Athletics Championships in Zurich, Switzerland, on Sunday with Louis Tsatoumas coming second in the long jump. Briton Greg Rutherford won the even...
Inside Sports
COMMENTARY
Self-destructing political system
It finally seemed as if we had found some peace of mind. The vast majority of Greek MPs chose to abstain from festivities on August 15, also known as Assumption Day, thus sparing us from the...
EDITORIAL
Welcome movement
Many have spoken about the need to spur economic growth in this debt-wracked country, but very few officials seem to actually be doing anything meaningful to make this happen. Recent weeks h...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. KEELPNO blames stomach bug for sick tourists on Rhodes
2. Report: Greek banks sturdily positioned
3. Economy stunted by property tax demands, report says
4. Primary surplus exceeds January-July target figure
5. KEPs to issue new and replacement driving licenses
6. EU funds reserved for waste facilities in northern Greece
more news
Today
This Week
1. Merkel cites euro’s ‘construction flaws’ as economy sputters
2. Brussels warns Greece over plans to allow construction near Korinos beach
3. Second man held over double murder in Mani
4. Avramopoulos in US for talks with Hagel on possible Greek role in peace missions
5. Eurozone business growth slows in July, prices fall: PMI
6. Inspectors visit Rhodes to probe reports of mass food poisoning of hotel guests
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Treating Amphipolis with care
3. Canada’s fiscal adjustment has lessons for Greece
4. Greece to offer law on restructuring bad loans next month
5. Ministry sys ‘no’ to debt collection agencies
6. Karatzaferis eyes ND-LAOS alliance to stop Tsipras
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.