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Rumours abound for South Cyprus’ Plan B

20 March 2013

Rumours abound for South Cyprus Plan B

  • It is possible that Russia will buy the Cyprus Popular bank. Other Cypriot banks have also been mentioned as potential targets.
  • Greek Central bank is preparing a draft law which would see all insured deposits ring fenced and uninsured deposits left to the mercy of the bank levy.
  • South Cyprus is preparing for a possible exit from the Euro.
  • Cypriot Finance Minister Michael Sarris is in Moscow where he has asked for a further €5bn on top of a five-year extension and interest rate cut on an existing €2.5bn loan from Russia, but there has been no decision yet.
  • There will be capital controls imposed by the government when the banks open, to deter a bank run.

Meanwhile, EU appointed consultants are looking into the legal framework surrounding money laundering claims. Their work started today and will be finished by the end of the month.
Further, the spokesman for the Association of Overseas Banks said that if their deposits were harmed in any way, it would lead to disaster.

Finally the Greek Orthodox church in Cyprus has pledged all its assets including its many properties to support the economy.

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