March 23, 2013

Cyprus will present plan to qualify for bailout

If the European Central Bank stops emergency funding, Cypriot banks will collapse on Tuesday.

By MENELAOS HADJICOSTIS The Associated Press

(Continued from page 1)

click image to enlarge

Small bondholders, who say they suffered major losses during Greece’s massive public debt write-off last year, protest Friday outside Greece’s Parliament in Athens.

The Associated Press

Michael Sarris returned to Cyprus on Friday night after spending three days in Moscow trying to drum up support.

"We will only be ready to discuss various ways of support for that state only after the EU nations and Cyprus work out a final settlement," Russian Prime Minister Dmitry Medvedev told a news conference.

Russia's finance minister, Anton Siluanov, said the Cypriots were seeking investment from Russian companies in a Cypriot state-owned firm that will manage revenue from the island's newfound offshore gas. The Russian investors, however, were not interested.

Cyprus also offered stakes in some of its banks, but there were no takers in Moscow for that, either. Siluanov also said they were not discussing providing a new loan to Cyprus as the EU has set a debt limit for Cyprus.

Back in Nicosia, worried Laiki employees gathered near parliament for a second day to protest the bank's restructuring, which would break the lender in two. One side would take on the soured investments to allow the stronger side to survive. Depositors who have part of their money taken by the government would receive an equity stake in the so-called good bank.

"The bank is finished, we'll lose our jobs and I'm worried about my kids," Laiki employee Nikos Tsiangos said, standing behind barricades blocking the way to Parliament. "They've brought us to the brink, the Europeans wanted to destroy our economy and they've done it."

Europe also turned up the pressure on Cyprus. Luxembourg's finance Minister Luc Frieden told Germany's Inforadio that Cyprus "certainly must change a very great deal in its financial sector ... I see among some euro states little financial room for more concessions to Cyprus."

 

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)