CYPRUS IN 2012 Troikans and haircuts: the year we all had to learn a new vocabulary
Pages 4-8
WORLD IN 2012 The world didn’t end and there was some hope for democracy
Pages 10-11
INSIDE
SundayMail
Complete TV guide to see you through the week
Hugo An ode to the Magic of the Movies and miraculous machines
Coriolanus Acclaimed moderndress version of the Bard’s potent tragedy
New Year’s Day, Novacinema1, 10pm
Thursday, Novacinema1, 10pm
D E C E M B E R 30 JAN UARY 5
Mission Impossible: Ghost Protocol Fourth installment of movie franchise and the best Tom Cruise movie in years Sunday, Novacinema1, 10pm
Complete guide to what’s on the small screen this week, including our selections and satellite choices
www.cyprus-mail.com
December 30, 2012
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NEW YEAR RESOLUTIONS: STOP ROUSFETI AND SQUANDERING CASH INSIDE Cyprus Explosives found near president’s home 3
Cyprus What we watched, read and listened to in 2012 8-9
World Top shots of the year from around the world 14
World ‘Only political process can save Syria from hell’ 27
Sport United preserve their point advantage back
PAGE 12
Bank lashes out at deputy critics Papadopoulos warns of a recession which could last decades after CB failings By Stefanos Evripidou
C
HAIRMAN OF the House Finance Committee Nicolas Papadopoulos yesterday accused the Central Bank of Cyprus (CBC) of “amateur” handling of the negotiations with the troika, saying that its methodologies will lead to state bankruptcy and hurl Cyprus into a recession that will last “decades”. The DIKO vice-president made the hard-hitting comments in a letter written in response to a CBC announcement on Friday night which accused the supervisory authority’s critics of running scared after two investigations were launched into the near demise of the island’s banking system. The CBC launched a scathing attack against “defenders” of the “bankers of the past”, who, it claimed, were trying to paint a picture that everything in the banking system was rosy until May 2012, when a smear campaign was allegedly started against the banks. The government and CBC have recently come under fire by their detractors for allegedly failing to prevent the upward revision of non-performing loans (NPLs) in the banking sector by accepting without a fight the troika’s demand to define loans with 90-day delays on repayments as NPLs. This effectively means that Cypriot banks will need a significant amount of money to recapitalise, which they will get from an EU/IMF bailout.
In turn, the size of the final bailout determines whether Cyprus will have sustainable public debt or not. Central Bank sources say the supervisory authority had no say in the matter as the troika made the new method of calculating NPLs a precondition in July 2012. The IMF has adopted the same 90-day standard on NPLs since 2009, as have all other eurozone countries, argued the sources. The notion that the CBC had other choices is not realistic, they said, adding that the option they do have before them is to challenge the figure set for the recapitalisation needs of the banks, as estimated by investment company Pimco. And for this, the CBC is seeking external help in verifying the due diligence work done by Pimco. According to Pimco’s preliminary results as reported in the press, the banks will need €10.3 billion. Sources told the Sunday Mail that the CBC is preparing to challenge this estimate with the help of a foreign consultancy firm and revise the figure downward, aiming closer to €9 billion or lower. This should go some way to helping make the final figure on Cyprus’ debt more sustainable, said the source. In response to Friday’s CBC announcement, Papadopoulos yesterday called on the CB governor Panicos Demetriades to name those he is talking about. The DIKO deputy accused
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On the campaign trail: DISY leader Nicos Anastasiades drumming up support for his candidacy in February’s presidential elections on Ledra Street in Nicosia yesterday. He later visited the Mall of Cyprus on the outskirts of the city
Rape victim death stirs anger, pledges of action A WOMAN whose gang rape provoked protests and rare national debate about violence against women in India died from her injuries yesterday, prompting promises of action from a government that has struggled to respond to public outrage. The unidentified 23-year-old medical student suffered a brain injury and massive
internal damage in the December 16 attack and died in hospital in Singapore where she had been taken for treatment. Protesters rallied peacefully in the capital New Delhi and other cities across the country to keep the pressure on Prime Minister Manmohan Singh’s government to get tougher on crimes against
women. That was in contrast to the pitched battles protesters fought with police last weekend. The six suspects held in connection with the attack on the student on a New Delhi bus were charged with murder following her death, police said.
FULL STORY PAGE 27