Thursday October 2, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus aid amount may reach 17.5 bln euros, FM says

Cyprus may need as much as 17.5 billion euros ($22.5 billion) in aid, almost the size of the country’s economy, to pay its bills and recapitalize Cypriot banks, Finance Minister Vassos Shiarly said.

Talks between Cyprus and its potential troika of lenders comprising the European Central Bank, the European Commission and the International Monetary Fund “are continuing, and we hope outstanding issues are settled soon,” Shiarly told reporters in Nicosia on Thursday after presenting the 2013 budget to Parliament Speaker Yiannakis Omirou. The budget contains cuts already approved by the troika.

Cyprus on June 25 became the fifth euro-area member to request an international rescue, which will encompass the public sector as well as banks, after Cypriot lenders such as Bank of Cyprus Plc and Cyprus Popular Bank Pcl lost more than 4 billion euros in Greece’s debt restructuring.

The Cypriot bailout will amount to about 6 billion euros to refinance state debt from 2013 to 2016 and 1.5 billion euros to cover fiscal deficits, Shiarly said, while as much as 10 billion euros may be required for the bank recapitalization.

The final amount of aid will be known after a review of the country’s banking system by Pacific Investment Management Co. that is due in late January, he said. The exercise includes an asset-quality review and a stress test to determine the capital needs of each institution, the Central Bank of Cyprus said on Sept. 28.

Few differences with the troika remain and these are likely to be bridged “very soon,” Cypriot President Demetris Christofias said in an e-mailed statement Thursday. A possible agreement with the troika may be discussed at a Dec. 3 meeting of euro-area finance ministers, Shiarly said.

Fitch Ratings Wednesday cut its below-investment grade credit rating for Cyprus by two levels to BB- from BB+, citing a fiscal budget that has “significantly underperformed expectations.” Fitch also cited a continued high level of uncertainty over costs associated with the recapitalization of Cypriot lenders.

Cyprus’s budget gap will be 4.4 percent of its economy in 2013, Shiarly said. The fiscal deficit widened to 3.3 percent of gross domestic product in the first nine months of 2012 from 3.1 percent a year earlier, the Finance Ministry said on Oct. 26. The government forecasts a gap of 4.5 percent for all of 2012 after a shortfall of 6.3 percent in 2011.

The Cypriot economy was estimated to be worth almost 18 billion euros in 2011, according to the Nicosia-based Cyprus Statistical Service. [Bloomberg]

ekathimerini.com , Thursday November 22, 2012 (16:13)  
Attica Bank said to have rejected notable offers
PMI index slides anew in September
Costa Navarino to host big events
Construction of F1 circuit at Patra to start by year-end
Terror group link prompts police raids and arrests
Police found a Kalashnikov assault rifle, a handgun, a hand grenade and numerous bullets Wednesday while searching homes in Athens and Thessaloniki used by six people who were detained and a...
Samaras to seek confidence vote in bid to rally coalition
The government said on Wednesday that it will request a vote of confidence when Parliament reconvenes after the summer recess next week, seeking to douse speculation about early elections an...
Inside News
SOCCER
Rosenberg punishes Olympiakos´s errors at Malmoe
A disappointing Olympiakos got the worst possible result from its clash with Malmoe in Sweden for the Champions League, going down 2-0 on Wednesday due to its own defensive errors and attack...
SOCCER
All team sports suspended next weekend in memory of dead fan
The government announced on Monday the suspension of all team sports events in Greece scheduled for next weekend, October 4 and 5, in the memory of the Ethnikos Piraeus fan who died a few ho...
Inside Sports
COMMENTARY
Truth before the battle
The coalition has lost its sense of direction in the last few months. Exactly where things went off track is not the question at this stage. What is certain is that if it continues competing...
EDITORIAL
Bending the rules
The flexibility with which laws are implemented has been a fundamental cause for concern in Greece during the post-dictatorship era. Everything becomes a subject for negotiation, even in cas...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Rosenberg punishes Olympiakos´s errors at Malmoe
2. Terror group link prompts police raids and arrests
3. Samaras to seek confidence vote in bid to rally coalition
4. Attica Bank said to have rejected notable offers
5. PMI index slides anew in September
6. Costa Navarino to host big events
more news
Today
This Week
1. Air-raid sirens to go off all over Greece at 11 a.m. in drill
2. Mario Draghi to push ECB to buy Greek, Cypriot 'junk' loans: FT
3. Truth before the battle
4. Smallpox decimates sheep stocks in northern Greece
5. Thessaloniki transport gets more expensive
6. Bending the rules
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.