Saturday April 19, 2014 Search
Weather | Athens
17o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cypriot foreign minister: island became ‘experiment’

Cyprus’ bailout package was a “warning” and the country was turned into an experiment on how to handle too-big-to-fail banks, said Cypriot Foreign Minister Ioannis Kasoulides.

Cyprus “was allowed to serve as an experiment, answering the biggest question -- what to do about banks too big to fail?” Kasoulides said in a speech at the Brookings Institution in Washington.

“The opportunity was offered for Cyprus to give the warning and the example for the rest,” he said. “Unfortunately, it didn’t permit us to re-adjust all the wrongdoings of our economy, let’s say within a three-year period, instead of this brutal and overnight collapse of our banking system.”

European governments and the International Monetary Fund agreed in March to loan Cyprus 10 billion euros ($13 billion) as long as the country liquidated its second-largest bank and forced losses on bank bondholders and deposits of more than 100,000 euros. The country’s parliament rejected an earlier plan that would have also imposed a levy on deposits of less than 100,000 euros.

In the aftermath, the nation’s economy is expected to struggle to recover. Cyprus Central Bank Governor Panicos Demetriades said on Thursday in Nicosia that the Cypriot economy will shrink 8.7 percent this year, as forecast by the European Commission.

The Mediterranean island was the fifth euro-zone country to tap international aid in the region’s sovereign debt crisis.

Kasoulides said the nation’s private sector will serve as an engine for growth going forward, and that Cyprus will end with a “much better and healthier” banking and financial system.

[Bloomberg]

ekathimerini.com , Friday May 10, 2013 (11:17)  
Eurobank share offering on April 25-29
PPC to issue corporate bond of 500 mln
Primary surplus continued by end-March
Eurobank eyes top Core Tier 1 level in Greece
Greek Christians mark rare Good Friday in north Cyprus
Hundreds of Greek Orthodox pilgrims, some coming home after 40 years of forced exile, commemorated the crucifixion of Jesus in a rare Good Friday service in northern Cyprus. Held in this med...
Greece offers to help find Turkish F-16 lost in 1996
Greece officially offered on Thursday to assist Turkey in its efforts to locate and salvage a Turkish Air Force fighter jet which crashed in the Aegean almost 20 years ago. Greek Defense Min...
Inside News
BASKETBALL
Greens lose badly as CSKA Moscow
Panathinaikos has a mountain to climb in order to reach the Final Four of the Euroleague after losing at CSKA Moscow on Friday for a second time in two days, only this time it was comprehens...
BASKETBALL
Former Red Bourousis wrecks Olympiakos´s hopes for a break
Olympiakos tried harder in Game 2 of the Euroleague play-offs in Spain, and Real Madrid was not as good on Thursday as in Game 1, but the Spaniards still emerged victorious on the night with...
Inside Sports
COMMENTARY
The placebo effect and the economy
Among the greatest mistakes made in the years of Greece’s hard landing is that citizens did not get the chance to sense that aside from austerity and pain the economic adjustment program als...
COMMENTARY
Ukraine is a crisis—but not a Cold War
Given Russia’s annexation of Crimea, the imposition of US and European sanctions, and the potential for more escalation in Ukraine, we are witnessing the most important geopolitical events s...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek Christians mark rare Good Friday in north Cyprus
2. Eurobank share offering on April 25-29
3. Greens lose badly as CSKA Moscow
4. Former Red Bourousis wrecks Olympiakos´s hopes for a break
5. PPC to issue corporate bond of 500 mln
6. Greece offers to help find Turkish F-16 lost in 1996
more news
Today
This Week
1. Greek Christians mark rare Good Friday in north Cyprus
2. Eurobank share offering on April 25-29
3. Greece startup leaders say they can’t break jobless cycle alone
4. Ground-breaking Good Friday mass signals thaw in Cyprus
5. Mayoral candidates clash over Athens mosque plans
6. Seven arrested over Toumba violence
Today
This Week
1. Greece's market return mirrors return of tourists
2. Samaras sees no need for third bailout
3. Parties start announcing candidates for European Parliament elections
4. Greece startup leaders say they can’t break jobless cycle alone
5. Germany signals easing on euro area before Merkel’s Greek trip
6. IMF's Thomsen says Greece not fully financed to 2016
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.