Make us your home page
Instagram

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Cyprus' bailout plan meets with skepticism

NICOSIA, Cyprus — Lawmakers took steps late Friday to revise a formula for obtaining a bailout of Cyprus' banks but faced strong signals that the plan would not pass muster with international lenders.

The Parliament put off until later this weekend a vote on a crucial new proposal that would confiscate 22 percent to 25 percent of uninsured deposits above 100,000 euros, or about $130,000, through a new tax on account holders in one of the nation's most troubled banks.

So with a deadline imposed by the European Central Bank looming on Monday, it appeared there was still no immediate path to a lifeline of 10 billion euros, or $13 billion, that Cyprus needs to keep its banks from collapsing.

Cyprus' so-called troika of lenders — the International Monetary Fund, the European Commission and the European Central Bank — must still approve any plan. President Nicos Anastasiades was scheduled to fly to Brussels today to meet with European Union leaders, a spokesman said.

Monday is a national holiday in Cyprus, but banks are supposed to reopen on Tuesday for the first time in more than a week. There is widespread fear of a classic bank run.

One of the provisions Parliament approved Friday would impose new restrictions on withdrawing cash or moving money out of the country when the banks reopen. These new capital controls would prohibit or restrict check cashing and bar "premature" account closings or any other transaction the authorities deemed unwarranted.

Lawmakers also voted to restructure the nation's largest and most troubled bank, Laiki Bank, by splitting off its troubled assets into a so-called bad bank. Accounts with no problem would be transferred to the nation's largest financial institution, the Bank of Cyprus. Lawmakers also voted to require that any bank on the verge of bankruptcy be split apart in the same way.

Still to be voted on is the measure to impose a tax of 22 percent to 25 percent on uninsured deposits at the Bank of Cyprus. That decision came after Cyprus proposed nationalizing the pension funds of state-owned Cypriot companies. Lawmakers approved that measure Friday, but the move was denounced in Germany, influence in the eurozone tends to dictate policy.

Cyprus' bailout plan meets with skepticism 03/22/13 [Last modified: Friday, March 22, 2013 10:52pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. 10 sailors missing, 5 hurt in collision of USS John S. McCain

    SINGAPORE — A U.S. Navy guided-missile destroyer collided with a tanker early Monday in waters east of Singapore and the Straits of Malacca, and at least 10 sailors are missing.

    The Navy said five others were hurt.

  2. Pasco County Fire Rescue fighting a two-alarm fire started by an explosion

    Fire

    Two houses are on fire and one victim has been critically burned and taken to a trauma center following an explosion at a home at 8652 Velvet Dr, in Port Richey.

  3. Rays see the Blake Snell they've been waiting for in win over Mariners

    The Heater

    ST. PETERSBURG — It was a one-run game Sunday when the Mariners' Robinson Cano singled with one out in the seventh inning, bringing the dangerous Nelson Cruz to the plate.

    Tampa Bay Rays starting pitcher Blake Snell (4) throwing in the third inning of the game between the Seattle Mariners and the Tampa Bay Rays at Tropicana Field in St. Petersburg, Fla. on Sunday, Aug. 20, 2017.
  4. Bucs counting on better health creating better pass rush

    Bucs

    TAMPA — Ask Bucs coaches about the improved depth and health of their defensive line, and they'll look around for a piece of wood to knock on.

    Retired All-Pro defensive end  Simeon Rice, right, the last Buc to have double-digit sacks in a season,  works with defensive end Ryan Russell, who last season was promoted from the practice squad for the second half of the year as injuries piled up. He is competing for a backup job this year.
  5. Tampa man turns himself in for Sunday hit and run fatality

    Public Safety

    A Tampa man was arrested early Sunday after he struck and killed a pedestrian, left the scene, and then called 911 to turn himself in.