Don't miss

Replay


LATEST SHOWS

ENCORE!

Film show: ‘Genius’, ‘The Secret Life of Pets’ and ‘Endless Summer’

Read more

FOCUS

Europe struggles to crack down on weapons trafficking

Read more

IN THE PAPERS

France priest terror attack: Is Europe helpless?

Read more

BUSINESS DAILY

Another drop in iPhone sales, so why are Apple shares rising?

Read more

IN THE PAPERS

Horror in the church: Priest 'assassinated by barbarians'

Read more

MEDIAWATCH

Online reactions to French church attack

Read more

THE DEBATE

France church attack: Priest killed in Normandy, assailants dead

Read more

FOCUS

Video: Inside a migrant hotspot in southern Italy

Read more

ENCORE!

'Oh my Gad!' French comedian Gad Elmaleh on his American dream

Read more

Europe

Cyprus president travels to Brussels for bailout talks

© AFP

Text by News Wires

Latest update : 2013-03-23

Cyprus's president traveled to Brussels on Saturday for talks with EU officials after its parliament, which rejected the terms of a rescue plan agreed last weekend, approved measures designed to secure a bailout from the EU and the IMF.

Cyprus President Nicos Anastasiades and party leaders will travel to Brussels on Saturday for crunch talks with the EU on measures aimed at staving off bankruptcy for the island, state media said.

The delegation would depart at lunchtime and return to Cyprus late on Saturday or on Sunday, a day ahead of a deadline to adopt the measures aimed at raising 5.8 billion euros ($7.5 billion) in order to secure a 10-billion-euro bailout, the official CNA news agency reported.

The Cyprus parliament finally gave its approval late Friday to the first three of eight measures hammered out by the government in a desperate bid to secure the bailout from the EU and IMF by Monday’s deadline.

MPs approved a solidarity fund to be set up through the nationalisation of pensions and capital controls to prevent a run on the island’s banks when they are finally due to open on Tuesday after being closed for more than a week.

Cyprus lawmakers vote bills to secure bailout

They also passed a restructuring plan drawn up by the Central Bank of Cyprus that will separate “good” debts from “bad” in the troubled banks, particularly in second largest lender Laiki Bank.

The most contentious of the measures that has yet to be put to parliament is a scheme to impose a levy on bank deposits—an unpopular measure that deputies have already rejected this week in another form.

But with the deadline looming and the option of securing funding from elsewhere including from ally Russia exhausted, they have been forced to revisit it as an option to raise the 5.8 billion euros.

Media reports on Saturday said the most likely scenario was a tax of 20-25 percent on deposits of more than 100,000 euros at the island’s biggest lender, the Bank of Cyprus.

The government needs to seal the package by Monday or face being denied European Central Bank emergency funding in a move that would collapse the island’s banks and devour its economy.

(AFP)

Date created : 2013-03-23

  • CYPRUS

    Cypriot president to present 'Plan B' rescue package

    Read more

  • CYPRUS

    Cyprus in crisis talks after bailout rejection

    Read more

COMMENT(S)