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EU Troika to discuss Anastasiades’ letter

20 June 2013

Eurozone Finance Ministers will be discussing a letter South Cyprus President Anastasiades has sent to the members of the Troika about long-term sustainable and viable measures for dealing with the liquidity problems the country’s biggest bank – Bank of Cyprus, is facing.

In his letter sent last week, the President referred to “a number of very pressing issues which need to be addressed the soonest”.

A senior Eurozone official said Wednesday in Brussels that he does not expect any significant changes to the adjustment programme, noting that both the Government and the Parliament have given their consent and he recalled the Government’s intention to implement the provisions of the Memorandum.

A reply will be sent to the President, he added, noting that there will be no suggestion that we change anything.

The Eurogroup will discuss the restructuring of the banking sector and the prospects of lifting capital controls in Cyprus.

They will also discuss two reports evaluating South Cyprus anti-money laundering legislation and the points of the reports that will be incorporated in the Memorandum of Understanding agreed between the Government of Cyprus and the international lenders.

Last March Cyprus agreed with international lenders on 10 billon euro aid package, under which it closed down the Popular Bank, and imposed severe losses on deposits of more than 100,000 euros held at the eurozone state’s biggest lender, Bank of Cyprus. Both institutions were heavily exposed to the Greek debt.

In the meanwhile President Anastasiades has claimed that he is determined to stick to the programme implemented for the bailout and downplayed press speculation that he had asked for changes to that plan. The president recently urged Eurozone leaders, in a letter to its EU creditors, to provide a long-term sustainable and viable solution for dealing with the liquidity issues the country’s biggest bank is facing, as a result of Eurogroup decisions last March.

 

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