Topic: Cyprus Bailout
MOSCOW, March 22 (RIA Novosti) – Talks between Russia and Cyprus on Moscow’s possible bailout of the island nation’s economy have ended, with Russian investors rejecting Cypriot proposals, Russian Finance Minister Anton Siluanov said on Friday.
“The final round of talks took place yesterday. The talks have ended,” Siluanov told journalists, adding that Russian investors “demonstrated no interest” in Cypriot proposals.
Cyprus had offered Russia – which holds between one third and half of the island's bank deposits – investments in its national banks and gas projects in return for financial aid.
But Cypriot Finance Minister Michalis Sarris flew home on Friday from Moscow empty-handed after two days of tense discussions.
It remained unclear if Sarris had managed to persuade Russia to extend an existing 2.5-billion euro ($3.2-billion) loan.
The European Central Bank has said that unless Cyprus raises billions of dollars by Monday it could lose emergency funds and face inevitable financial collapse.
"The provision of a state loan was not considered because Europe has established a debt ceiling they [Cyprus] are not allowed to surpass, and a loan would take them past that threshold," Siluanov said.
Analysts say Cypriot gas projects to explore and produce natural gas in deep-water zones off the island’s coasts were likely to be a hard sell to Russia, in light of possible opposition from Turkey, which has refused to recognize the Republic of Cyprus or its maritime borders since the island was split into two parts in 1974.
The urgency for a multibillion-dollar loan from Russia emerged after the Cypriot parliament rejected on Tuesday a levy on bank accounts that international creditors, including the European Union and the International Monetary Fund, had set as a condition for providing a 10-billion euro ($13-billion) bailout for Cyprus.
International creditors said on Saturday that their rescue package for debt-laden Cyprus was contingent on a one-off deposit levy to yield an additional 5.8 billion euros ($7.5 billion) in revenues for the cash-strapped Cypriot budget.
Overall, Cyprus needs about 17 billion euros in aid to shore up its budget and recapitalize its banks, which were forced to write down billions of euros in “voluntary” Greek debt restructuring.
Add to blog
You may place this material on your blog by copying the link.
- niogreekTHIRD WORLD WAR13:30, 22/03/2013THE THIRD WORLD WAR began officially before 3 years, with the German financial attack against the countries of southern Europe.
The actual attack began insidiously 15 years earlier, with the financing of the destruction of all the resources of these countries, such as (a) the destruction of crops, (b) the destruction of vessels and (c) the closure or the transfer of their craft industries, arguing that it makes for better financial growth, as the Union of a “mutual” Europe will become more competitive.
One of the biggest victims was Greece, because of corrupted politicians, who as taking money from Germany via the German company managed the following:
(a) the corrupted greek political leaders gifted all war reparations on Germany because they sought adjournments in all legal proceedings til reparations were barred,
(b) the corrupted greek political leaders have not yet been formally requested the return of the GERMAN occupation loan. Hitler himself had recognized the legal character of this loan and had given orders to start the process of its repayment. However, Germany is consistently refusing to pay its obligations to Greece arising from the occupation loan and war reparations. In 1964, German chancellor Erhard pledged repayment of the loan after the reunification of Germany, which occurred in 1990.
Ιt is estimated that the current value of the occupation loan is $163.8 billion and that of the war reparations is $332 billion. The French economist and consultant to the French government Jacques Delpla stated on July 2, 2011, that Germany owes to Greece 575 billion euros from Second World War obligations (Les Echos, Saturday, July 2, 2011). The German economic historian Dr. Albrecht Ritschl warned Germany to take a more chaste approach in the euro crisis of 2008-2011, as it could face renewed and justified demands for WWII reparations (Der Spiegel, June 21, 2011, guardian.co.uk, June 21, 2011).
(c) the corrupted greek political leaders denounced Greece as a corrupted country and after that they dragged Greece to the IMF, although the total debt was less than that of other countries, even that of Germany.
(d) the corrupted greek political leaders signed a Memorandum of borrowing which prohibits debt settlement because the Germans do not want to offset the above occupation loan.
Unfortunately, French have their eyes closed exactly as in the start of 2 previous world wars. The British, the Russians and the Americans are seeing but they do not react yet.
Now the Germans in the place of the Jews put the Southern European people and try to eliminate them. The Germans continue to "bombard" strategic economic goals. Last goal is the banking system in Cyprus.
At the end of course the Germans will lose again because of their greed. But Europe will be destroyed for a third time. Please stop Germans in time.
The main event of the third day of the 11th meeting of the Valdai International Discussion Club in Sochi was the closing session with President Vladimir Putin. The atmosphere was calm and open, despite the current political tensions and the Russia-West confrontation. The Russian president said that it corresponded to the spirit of the Valdai Club.