Widespread anger has been voiced in Cyprus as the terms of the EU-IMF's €10bn bailout were relayed to citizens.
The deal will see depositors lose as much as 10% of their savings under a once-off levy.
The island's cooperative banks shut their doors this morning after a rush of depositors arrived early to withdraw their money before the bailout terms kicks-in.
It is reported that depositors are continuing to access their funds through ATM machines even though the cooperative banks, which represent about a fifth of the island's banking sector, closed early.
The levy on depositors represents a radical departure from previous bailouts for Ireland, Greece, Portugal and Spain.
Under the deal, a levy of 9.9% will apply on deposits exceeding €100,000, with a rate of 6.7% on anything below that figure.
The aim is to raise nearly €6bn.
However, the deal levy must be ratified by parliament before banks open on Tuesday, after the bank holiday on Monday.
The head of parliament's financial affairs committee Nicholas Papadopoulos said the decision was "much worse than what we expected."
While the new Cypriot President Nicos Anastasiades had opposed the introduction of a levy fearing a run on the banks and capital flight, but it had been pushed strongly by the International Monetary Fund.
Of an estimated €69bn in the Cypriot banking system, 37% is held by non-residents, many of whom are Russian investors.
Cyprus becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the eurozone for financial help in the wake of the region's debt crisis.
Without a rescue, Cyprus would default and threaten to unravel investor confidence in the eurozone that has been fostered by the European Central Bank's promise last year to do whatever it takes to shore up the currency bloc.
Meanwhile, the European finance ministers have agreed to extend the maturities on part of Ireland and Portugal's bailout loans.
Minister for Finance Michael Noonan has said that this will further enhance Ireland's debt sustainability.
Russia provides aid
Moscow, which has close ties with Nicosia, is likely to help by extending a €2.5bn euro loan already made to Cyprus by five years to 2021 and reducing the interest rate.
Cyprus' finance minister Sarris will travel to Moscow for meetings on Monday to try to pin down the new loan terms.
Cyprus originally estimated it needed about €17bn, almost the size of its entire annual output, to restore its economy to health.
But because a loan of that magnitude would increase its debt to unsustainably high levels and call into question its ability ever to pay it back, policymakers sought to reduce it by finding more revenue sources in Cyprus itself.
Anda sedang membaca artikel tentang
Anger over €10bn bailout package agreed for Cyprus
Dengan url
http://newsdeadlineup.blogspot.com/2013/03/anger-over-a10bn-bailout-package-agreed.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Anger over €10bn bailout package agreed for Cyprus
namun jangan lupa untuk meletakkan link
Anger over €10bn bailout package agreed for Cyprus
sebagai sumbernya
0 komentar:
Posting Komentar