News update 24/03/2013
Καλημέρα σε όλους.
Our president and the negotiating team are facing stiff resistance from Troika during these negotiations. It seems that the future of Bank of Cyprus and the % allocation of the levy are probably major sticking points.
By restructuring the two largest banks, if it comes down to that, and blocking all the accounts over €100k into a lengthy recovery process, business activity on the island will be suffocated as most major businesses probably had their accounts and savings with one or the other bank.
Our future will be decided at tonight’s Eurogroup, which will be attended by Christine Lagarde from the IMF as well.
Today’s news – 24/03/2013:
Cyprus seeks 11th-hour deal to avert meltdown
Facing a Monday deadline to avert a collapse of the Cypriot banking system, talks in Nicosia to seal a bailout from the EU and International Monetary Fund broke up late on Saturday without result.
"Negotiations are at a very delicate phase," the Cypriot government said in a statement.
"The situation is very difficult and the deadlines are very tight," it said. Anastasiades will arrive in Brussels in the mid-morning to continue the talks, it said.
Cyprus: The Operation Was a Success. Shame the Patient Died.
An EXCELLENT write up with interesting conclusions
No human agency has achieved so much economic destruction in such a short time without the use of weapons.
His conclusion
The debt clean-out will help growth as it always has. But cold comfort for the people sacrificed by a toxic blend of European idealism and grotesque local incompetence
Cyprus crisis: UK experts fly out to advise on bailout
Cyprus faces decision time - but with a gun to its head
It looks like blackmail from the powerful against the weak, who are trying to do everything they can to keep going within the eurozone.
Christopher Pissarides
Don't Forget the Geopolitics of Cyprus - from Mohamed El-Erian, CEO of PIMCO
IF the current crisis were to intensify to such an extent as to force Cyprus to leave the eurozone, look for it to turn to Russia for immediate financial assistance to stabilize what would likely be a very disorderly domestic situation. And IF this once-improbable (indeed, once-unthinkable) event were to materialize, expect Russia to be highly willing and very able to step into the chaos.
A greater strategic role in Cyprus would compensate Russia for its diminishing influence in Syria, another Mediterranean access point. Meanwhile, its involvement in the development of Cypriot gas fields would give it an even greater say in the supply of energy to western Europe.
Why Russian Oligarchs Are Laughing Off The Cyprus Haircut
According to Reuters, now that the oligarchs have moved out, its likely that upper middle class/entrepreneur types will feel most of the pain if the Cyprus tax is enacted.
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