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CYPRUS’S FINANCE MINISTER is travelling to Moscow today to discuss the possibility of a major loan from the Russian government, after the national parliament rejected a €10 billion bailout from the EU and IMF which involved a controversial tax on bank balances.
Finance minister Michalis Sarris – who yesterday revealed he had offered his resignation over the calamitous EU-IMF bailout deal, only to have it rejected – will meet his Russian counterpart Anton Siluanov.
The controversial deposit tax, an unprecedented part of Cyprus’s aid package, would have been a particular blow to Russian investors who are known to use the island as an offshore banking venue.
Cyprus already received a €2.5 billion loan from Russia two years ago, and has been looking to renegotiate the repayment terms and schedule on this loan. The rebuff of the EU-IMF’s €10 billion in new loans, however, could see Nicosia look to sound out the possibility of a larger second loan.
President Nicos Anastasiades will meanwhile hold an emergency meeting of party leaders to try and concoct a ‘Plan B’ after the parliament rebuffed the European plan – with even the 19 MPs from Anastasiades’s own Democratic Rally party choosing to abstain from the parliamentary vote.
Anastasiades said he ‘fully respected’ the parliamentary decision, and last night held a phone conversation with Russian president Vladimir Putin to discuss a potential response.
Cyprus’s banks remain closed today – after an emergency bank holiday was declared for yesterday, following a more regular one on Monday – as authorities fear a run on deposits by worried householders trying to stop themselves from facing a future levy on their deposits.
The president of the Eurozone’s body of 17 finance ministers, Dutch minister Jeroen Dijsselbloem, issued a terse statement following the Cypriot vote merely confirming that the European deal remained on the table.
His German counterpart Wolfgang Schauble expressed greater dismay, and said a rescue plan for Cyprus could only work if it offered a credible way for Cyprus to “regain access to financial markets”.
“For now the debt is too high,” Schauble told a TV interview. “It must be reduced.”
Cyprus’s two main banks suffered badly when the Greek government partially defaulted on its loans last year, and now have a major capital shortfall.
The controversial banking levy, which was due to raise about €5.8 billion, would have raised enough funds to recapitalise the two banks. Depositors would have been given shares in the banks as compensation for their lost deposits.
A further €1.2 billion would have been raised by burning junior bondholders at those banks.
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Going to be a huge waste in tax payer money on this.
Reminds me of the 100ks euro being spent on reports getting them translated to Irish , yet time and time again nobody ever requests the Irish reports.
Having 20% being Irish is out of step with Irish population, no where near 20% of this country’s population chooses Irish as their first language
@Barry Somers: maybe have them 100% available in Irish only. English translation by request only. Maybe that would encourage people to improve their Irish. What’s your plan? Just give up on your country’s beautiful indigenous language..?
@Diaspora’d: oh I see, you are trying the same tactic as the education system when it comes to Irish by forcing it on people.
Remind me again just how much its failed for decades where people leave school with hardly a word of Irish.
It’s failed utterly in our education system but it seems that doesn’t stop you.
@Barry Somers: Actually it’s because it’s never been properly implemented. Still can’t understand why kids in Ireland are not all educated in all-Irish primary and secondary schools. All-Irish schools are an excellent way to give kids the ability to be bilingual and then be able to pick up other languages too. It’s no hindrance to their overall education and I also can’t understand why Irish people who are proud of their identity would be so willing to let their indigenous language die.
Faoi dheireadh! Dea nuacht don Ghaeilge.
Before any of the nay sayers comment here. This won’t actually cost anything. Asking that a proportion of the messages already sent out by departments be done as Gaeilge makes sense. It’s a shame to see government departments putting out English only messaging on social media
20% employment will be a great encouragement for young people to engage with the language more in school and college.
@Aodhán Ó Deá: Aontaím go hiomlán
Visit the so-called Irish-speaking areas (Dingle is a prime example) and listen to the languages spoken. English, of course, and, depending on the time of year, Polish is next and then German and French. The pretence is embarrassing. The only place I know of that comes remotely close to being a Gaeltacht is Carraroe, Co Galway but it’s nowhere near what it was when I lived there years ago. We didn’t need Gaeltacht signs back then; the predominant language was Irish. Today is quite a different story. Time to face reality. Sad but true.
Ar feabhas!
Irish is Marbh.
Waste of money
More people speak polish than Irish
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