Today: January 18 2019
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Cyprus requests a review of requirements for granting aid

Cyprus requests a review of requirements for granting aid

Tags: President, Banking, EU Help

Cyprus President asked eurozone leaders to renegotiate the terms allocation in the amount of aid to the country 10 billion euros, as Cyprus is likely to not be able to meet them.

Current conditions detrimental to the economy and the banking system even more than expected.

Cyprus President Nikos Anastasiadis believes that the restructuring of the two largest banks in the country has been "implemented without careful preparation" and destroyed the working capital of many companies, and the required action unprecedented control over the movement of capital hurt the economy, according to The Financial Times.

"The economy has been driven into a deep recession, leading to a further increase in unemployment and an increasingly complex financial and fiscal consolidation - wrote Anastasiadis leaders of the EU and the IMF. - I urge you to consider the possibility to define a viable prospect for Cyprus and its people."

He asked to give up the restructuring and partial merger of the two largest banks, which account for 80% of the banking sector in Cyprus.

A senior official of the euro zone, directly involved in the negotiations, said that finance ministers will discuss this letter on Thursday.

"Essentially, it asks for the complete abolition of the program", - he said and added that the lack of preparation for rescue program partially guilty Anastasiadis government, which initially rejected the rescue package.

Recall that for obtaining assistance from international lenders Cypriot authorities had to accept the fact that Bank of Cyprus must be restructured, which resulted in the loss of depositors with the size of the contribution of more 100 thousand. Euros will be about 30%. The second largest bank, Laiki, will be completely closed, and losses will be compensated only for the owners of deposits smaller than 100 thousand. Euros. It has led to a decline in ratings of the banks to default level, and lower ratings of Cyprus.


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