CYPRUS MAIL

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Cyprus Mail www.cyprus-mail.com

Tuesday, February 12, 2013

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CYPRUS

SPORT

MUSIC

Med prices fall but new ‘transaction fee’ on prescriptions

United hoping Ronaldo will not emulate namesake back

Grammys spread ad wide on music’ss biggest night

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Eurogroup asks for Cyprus audit Private firm to be hired within a week but Nicosia will have a say By Elias Hazou

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SUMMIT of eurozone finance ministers decided yesterday that a private-sector auditor would probe Cyprus’ compliance with anti-money-laundering regulations but the island drew no clear support from its partners on its refusal to impose losses on bank depositors as part of a bailout programme. Speaking at a press briefing in Brussels last night, Eurogroup president Jeroen Dijsselbloem said the private firm would investigate both the legal framework in place as well as enforcement. Cypriot authorities and the troika - a team of EU, IMF and European Central Bank experts - would jointly select the auditor and determine its terms of reference. EU officials want Cyprus to pick the company as quickly as possible, inside of a week so that a report is ready in time for a bailout deal, mooted for March. Asked by reporters if he could exclude the idea that depositors in Cyprus would lose money under the bailout, Dijsselbloem avoided a direct answer. “Tonight where Cyprus is concerned we zoomed in on the issue of anti-money laundering and didn’t go into any possible, or not possible, elements of a programme so I can’t go into these elements with you,” he said. “We agreed that an independent assessment conducted by a private sector firm is

FINAL DEBATE BEFORE ELECTIONS

required and we requested the troika and Cyprus to agree on the terms of reference for such an assessment within a week,” he added. There was no immediate reaction from the government on either issue after the meeting. But beforehand, Finance Minister Vassos Shiarly said the issue of imposing losses on depositors was not acceptable to Cyprus under any circumstances. He did, prior to the meeting, reiterate that Cyprus welcomed an independent audit into its anti-money-laundering system, but insisted the probe be assigned to international institutions. “Our position is very clear: we have nothing to hide, we shall accept checks, just as we have agreed to checks from the International Monetary Fund, Moneyval and the Financial Action Task Force (FATF), international organisations that are ordained to carry out such checks,” Shiarly said. He added: “We are open to these international organisations at any time, even today, whenever they want.” By allowing Nicosia a say in picking the auditors, it appears a face-saving solution was achieved for all concerned at yesterday’s Eurogroup meeting. Cyprus, which recommended the audit, was averse to a subsequent counter-proposal made by eurozone officials that the probe be assigned to a private sector auditor. Such a move could raise

From left: DISY’s Nicos Anastasiades, AKEL-backed Stavros Malas and EDEK-backed Giorgos Lillikas take on the economy and domestic policy in the third and final television debate last night FULL STORY PAGE 4

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Pope Benedict stuns world with shock resignation By Philip Pullella POPE Benedict stunned the Roman Catholic Church, including his closest advisers yesterday when he announced he would stand down in the first papal abdication in 700 years, saying he no longer had the mental and physical strength to run the Church through a period of major crisis. Church officials tried to relay a climate of calm confidence in the running of a 2,000-year-old institution but the decision could lead to one of the most uncertain and unstable periods in centuries for a Church besieged by scandal and defections. Several popes in the past, including Ben-

edict’s predecessor John Paul, refrained from stepping down even when severely ill, precisely because of the confusion and division that could be caused by having an “ex-pope” and a reigning pope living at the same time. This could create a particularly difficult problem if the next pope is a progressive who influences such teachings as the ban on women priests and artificial birth control and its insistence on a celibate priesthood. The Church has been rocked during Benedict’s nearly eight-year papacy by child sexual abuse crises and Muslim anger after the pope compared Islam to violence. Jews were upset over rehabilitation of a Holocaust denier and there was scandal over the leaking of the

pope’s private papers by his personal butler. In an announcement read to cardinals in Latin, the universal language of the Church, the 85-year-old said: “Well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of St Peter ... “As from 28 February 2013, at 20:00 hours (1900 GMT) the See of Rome, the See of St. Peter will be vacant and a conclave to elect the new Supreme Pontiff will have to be convoked by those whose competence it is.” At a news conference, chief Vatican spokesman Father Federico Lombardi said the pope did not fear a possible


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