The European Union and the IMF agreed to bail out Cyprus’ debt-laden economy and grant the island nation a loan worth 10 billion euros ($13 billion) in return for the government’s obligation to tax all deposits kept at Cypriot banks. The bailout plan has yet to be approved by Cyprus’ parliament.
The board of directors of Bank of Cyprus voted Thursday to unfreeze 900 million euros in deposits, Prime business news agency reported.
Cyprus plans to give shares of the island nation’s largest bank, Bank of Cyprus, to Russian depositors as compensation for recent deposit “haircuts” imposed under a €10 billion ($13 billion) bailout agreement to pull the economy out of financial crisis, Cyprus’ president said Wednesday.
Russia’s Deputy Finance Minister Sergei Storchak said an announcement by a Cypriot minister that the reconstruction of the island nation’s 2.5 billion euro loan from Russia had been agreed was premature.
Sanctions imposed by the European Union on Belarus over its human rights record saved Belarusian businessmen from taking a Cyprus deposit "haircut," President Alexander Lukashenko said on Friday.
Russian President Vladimir Putin said on Friday that the recent financial meltdown in Cyprus proved how "risky" and "insecure" investments in Western financial institutions can be.
The president of Gazprombank, the Russian energy giant’s banking arm, is among individuals who pulled their money from the troubled Laiki Bank just days before Cyprus agreed a “haircut deal” with international lenders, The Financial Times said on Wednesday, citing local media.
Cypriot Finance Minister Michalis Sarris has tendered his resignation after concluding talks with the troika of international lenders on a controversial bailout deal to rescue the island nation from financial collapse, Cypriot TV channels reported on Tuesday.
The Russian government will closely watch the situation around the Russian Commercial Bank, a subsidiary of state-run VTB, when deciding on the forms of its support for Cyprus’s financial system, Prime Minister Dmitry Medvedev’s spokeswoman Natalya Timakova said Monday.
Russian authorities plan no support measures for citizens who might partially lose their funds deposited in crisis-stricken Cypriot banks, Russian First Deputy Prime Minister Igor Shuvalov said late on Sunday.
Archbishop Chrysostomos II of Cyprus said his country should withdraw from the European Union as the EU will fall apart and cease to exist in the future.
The financial crisis in Cyprus has made headlines in Russia for days. At first, the Russian media were surprised by Europe’s seemingly irrational and destructive approach to the relatively small Cypriot problem, but the surprise soon turned to anger at the fact that Europe had informed Russia about its decision post factum and neglected to consult it, even though it was aware of Russia’s interests in Cyprus.
Andreas Artemis, head of Bank of Cyprus, the country’s biggest lender, has submitted his resignation in the wake of a bailout deal that the Eurogroup reached with the Cypriot authorities to rescue the island nation from bankruptcy, western media reported on Tuesday.
Fitch Ratings has downgraded the ratings of Cyprus’ two largest banks to default levels after the Eurogroup struck a bailout deal with the Cypriot authorities as a precondition for Cyprus to receive much-needed aid, the international rating agency said on Tuesday.