Thursday April 17, 2014 Search
Weather | Athens
15o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
ECB's Asmussen warns Cyprus's problems, unaddressed, could hurt eurozone

Financial problems of the small island state of Cyprus should not be underestimated, because they could still derail the still fragile confidence in the eurozone, European Central Bank board member Joerg Asmussen told Reuters.

"Disorderly developments in Cyprus could undermine progress made in 2012 in stabilizing the euro area. Cyprus could well be systemic for the rest of the euro area despite its size," Asmussen said.

Asmussen's comments came after some eurozone states voiced concerns Cyprus, with gross domestic product of about 0.2 percent of eurozone GDP was not "systemically relevant" to the 17-nation currency bloc, a precondition for a bailout.

"Under normal circumstances one would expect the direct impact of a default to be limited, and it's obvious that without assistance the country will default," Asmussen said on the sidelines of a meeting of European Union finance ministers.

"At the same time we should recognize that the situation is not normal. Even though the promise of the OMT and other important decisions have calmed the markets, this situation is still fragile."

Cyprus applied for financial aid last June after its banks suffered huge losses following an EU-approved write-down of Greek debt, but some states are also uneasy about bailing out a country they say lacks financial transparency.

Asmussen added Cyprus could impact twice-bailed out Greece through banking sector channels and send a negative signal to the rest of the eurozone, especially harming the outlook for those states trying to regain full access to financial markets.

"I expect that a final agreement on a program could be reached at the end of March," he said. "The program must provide for a close monitoring of the anti-money laundering and tax transparency frameworks and their implementation." [Reuters]

ekathimerini.com , Tuesday Jan 22, 2013 (12:36)  
Greece startup leaders say they cant break jobless cycle alone
Euro award institutions choose Greece
Mission to woo Russian visitors
IOBE: Reforms are the only way for economy to return to growth
Homemade bomb targets car of deputy Parliament speakers wife
A homemade explosive device on Thursday destroyed the car of deputy Parliament Speaker Giorgos Kalantzis's [photo] wife. The vehicle was parked outside the couple's home in Kavala, northern ...
Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
Laid off cleaning ladies wearing crowns of thorns on Thursday protested outside the Finance Ministry in Athens, local media said. Demonstrators reportedly waved banners against the job cuts ...
Inside News
SOCCER
Greek soccer turns fishier than ever
Soccer in Greece reached new lows in scenes unseen since the national teams triumph in Euro 2004, as PAOK and Olympiakos served up a cup semifinal with PAOK emerging as the winner and the s...
BASKETBALL
Greens within a whisker of upsetting CSKA Moscow
Panathinaikos came mighty close to snatching home advantage from CSKA Moscow in Game 1 of the Euroleague play-offs on Wednesday, but eventually succumbed to its host in Russia in overtime, w...
Inside Sports
EDITORIAL
Transparency of political party funding
Ensuring transparency in the funding of political parties and the manner in which they choose to spend their funds are crucial to the smooth functioning of our democracy. After all, most of ...
COMMENTARY
Historical baggage
In Ukraine, which is on the brink of civil war, its not just whether the former Soviet republic will join the Western camp or retain a neutral status reminiscent of Finland before the break...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Homemade bomb targets car of deputy Parliament speakers wife
2. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
3. Greece startup leaders say they cant break jobless cycle alone
4. Mayoral candidates clash over Athens mosque plans
5. Seven arrested over Toumba violence
6. Ground-breaking Good Friday mass signals thaw in Cyprus
more news
Today
This Week
1. Ground-breaking Good Friday mass signals thaw in Cyprus
2. Seven arrested over Toumba violence
3. Mayoral candidates clash over Athens mosque plans
4. Greece startup leaders say they cant break jobless cycle alone
5. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
6. Homemade bomb targets car of deputy Parliament speaker's wife
Today
This Week
1. Bomb explodes outside Bank of Greece
2. Time to take a hard look at debt sustainability, says OECD chief
3. For faith and country
4. CCTV footage from Nigrita Prison shows signs of inmate torture [Video]
5. Car bomb explodes outside Greek Central Bank building, no one hurt [Update]
6. Samaras sees no need for third bailout
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.