Friday Jul 25, 2014 Search
Weather | Athens
32o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
‘Nobody wants Cyprus to leave the euro’

As the drama of the Cypriot bailout effort continued for a 10th consecutive day on Sunday, fears of contagion from the island’s crisis and from the pattern of bank deposit haircut are spreading across the eurozone, which is determined to hold on to Cyprus.

As President Nicos Anastasiades and Finance Minister Michalis Sarris fly to Brussels to fine-tune the deal with the troika of the island’s prospective creditors ahead of the evening meeting of the Eurogroup, the governor of the Bank of France confirmed that Cyprus is to remain an integral plan of the eurozone.

"Cypriot banks have for years been taking the kinds of risks that are not allowed in France,» governor Christian Noyer told French newspaper Le Journal du Dimanche on Sunday.

"Nobody wants Cyprus to leave the euro,» he said. «The first people to suffer would be Cypriot citizens."

“I don’t see any major contagion issues,” Finnish Prime Minister Jyrki Katainen told reporters in Saariselkae, Finnish Lapland, on Saturday. “I’m very confident that we can see solutions on Sunday or Monday.”

Ordinary Cypriots have been outraged by the levy and stunned at the pace of the unfolding drama. They elected Anastasiades in February on a mandate to secure bailout and save banks whose capital was wiped out by investments in Greece, the epicenter of the eurozone debt crisis.

But for the past week they have been besieging cash machines ever since bank doors were closed on the orders of the government to avert a massive capital flight. Anticipating a run on banks when they reopen on Tuesday, parliament has given the government powers to impose capital controls.

On Saturday, some 1,500 protesters, many of them bank workers, marched on the presidency, holding banners that read, «No to the bankruptcy of Cyprus» and «Hands off workers' welfare funds».

The levy on bank deposits represents an unprecedented step in Europe's handling of a debt crisis that has spread from Greece, to Ireland, Portugal, Spain and Italy.

Cypriot leaders had initially tried to spread the pain between big holdings and smaller depositors, fearing the damage it would inflict on the country as an offshore financial haven for wealthy foreigners, many of them Russians and Britons.

The tottering banks hold 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros – enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.

[Reuters]

ekathimerini.com , Sunday March 24, 2013 (10:40)  
Aegean Airlines resumes flights to Tel Aviv
Draghi safety net becoming blindfold as bonds soar
Illegal betting worth 5.5-6 billion euros
Wait is still on for many taxpayers
PPC to look into death of disabled customer
The Public Power Corporation (PPC) launched an administrative inquiry on Thursday into why electricity supplied to the home on Crete of a quadriplegic customer on life support was cut, resul...
Boutaris plans Islamic art museum for Thessaloniki
Thessaloniki Mayor Yannis Boutaris on Thursday announced plans to establish a museum of Islamic art in Greece’s northern port city. Boutaris, who was re-elected in May, told Kathimerini he h...
Inside News
TRACK & FIELD
Athens, the Marathon capital of the world for good
Paco Borao, the man who restored Athens as the Marathon capital of the world with the establishment at the Olympic Sports Center of the headquarters of the International Association of Marat...
TRACK & FIELD
Pole vault record on same day as three doping cases
Greek track and field had a mixed weekend, as on the same day as Katerina Stefanidi matched the national record in pole vault as well as the leading result in Europe so far this season, thre...
Inside Sports
COMMENTARY
Forty years of shortsighted party policies
It is 40 years since the restoration of democracy, and the two main parties which were established in 1974 and determined the country’s fate since then are unable to act their age. For decad...
EDITORIAL
Putting the past behind us
Democracy was restored in Greece 40 years ago and the country owes a debt to Constantine Karamanlis for handling the transition and anchoring the country firmly in the safe port of Europe wi...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Aegean Airlines resumes flights to Tel Aviv
2. Draghi safety net becoming blindfold as bonds soar
3. Illegal betting worth 5.5-6 billion euros
4. Wait is still on for many taxpayers
5. Hardouvelis to push for milestones target
6. IMF insists on eurozone lightening Greece’s debt
more news
Today
This Week
1. Draghi safety net becoming blindfold as bonds soar
2. Aegean Airlines resumes flights to Tel Aviv
3. Quadriplegic woman on life support 'dies due to unpaid power bills'
4. Efforts continue on Crete to find 'Sifis' the crocodile
5. Democracy 'retreated' during crisis, says Papoulias
6. Family of deceased woman on life support says application for 'special status' had been filed with PPC
Today
This Week
1. Greece seen in third bailout as bonds not enough, economists say
2. Climber dies in Mount Olympus fall
3. Greek sovereign debt at 174.1 percent of GDP in first quarter
4. Greek banks able to tap investors after stress tests, HFSF Says
5. Unequal after death
6. Death on MH17 and our global war
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.