Cyprus Mail Daily newspaper

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Cyprus Mail www.cyprus-mail.com

Thursday, February 21, 2013

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‘MI5 ruined my life’ says London Cypriot

Witness ‘heard Pistorius house row’

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S&P says real risk of default Ratings agency warns island is facing a ‘material and rising’ risk By George Psyllides

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YPRUS faces a “material and rising risk” of defaulting on its sovereign debt, especially if the eurozone and International Monetary Fund do not come up with aid, rating agency Standard & Poor’s said yesterday. “We see at least a one-inthree chance that we could lower the Cyprus sovereign ratings again in 2013, for example if official financial assistance from the (European bailout fund) ESM and/or IMF is not forthcoming, leaving the Cypriot authorities few choices apart from to restructure its financial obligations,” S&P’s head of EMEA sovereign ratings Moritz Kraemer said in a report. S&P’s comments came as the island gears up for a runoff presidential election on Sunday pitting DISY chief Nicos Anastasiades, who is in favour of a swift bailout deal against the AKELbacked Stavros Malas who supports a bailout but with fewer harsh austerity measures. “We could also lower the ratings if we believe the (Cypriot) authorities are not able to fulfill the conditions that would be attached to an official assistance programme.” S&P currently rates Cyprus at CCC+, well into noninvestment grade “junk” bond territory, with a negative outlook. Cyprus asked for international aid eight months ago after its banks suffered huge losses on exposure to

a restructuring of Greek sovereign debt and due to difficulties in accessing international capital markets shut to it because of fiscal slippage since mid-2011. Cyprus could need an estimated €17.5 billion from the eurozone to recapitalise its banks and to finance the government over the next three years. Though the final figure has not yet been agreed, as Cyprus appears to object the amount needed for bank recapitalisation – €10 billion, the EU and the IMF have expressed concern over the island’s debt burden after the bailout. The IMF has reportedly asked for Cypriot banks to be recapitalised directly by the European Stability Mechanism and or a debt restructuring of either sovereign or bank debt. The idea of deposit haircuts has also been floated. Financial services giant J.P. Morgan views the recent rhetoric as “mostly negotiation tactics.” “The IMF wants to force a more pro-active commitment from the eurozone (it is also pushing for bank recap relief in Ireland), and both the IMF and eurozone want Cyprus to agree to more aggressive reforms and collateral commitments,” a J.P. Morgan report said earlier this month. “Similarly, the eurozone wants to ensure Russia’s participation in the bailout, given Russia’s deep economic ties to Cyprus. Policymakers can only reach these goals by

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Health Minister Androulla Agrotou yesterday visited St George’s University of London Medical School at the University of Nicosia where she signed an agreement allowing students to carry out their required practice at hospitals and clinics in Cyprus. The minister was given a tour of the School by its Course Director Dr Adonis Io-

annides. Photo shows a mock medical procedure being shown to the minister. The school currently hosts 98 students from 21 countries, the majority coming from North America and Europe. Agrotou congratulated the school for the high level of education offered and its modern infrastructure

Woman ‘close to family’ arrested in toddler kidnap By Peter Stevenson POLICE arrested a 35-year-old woman yesterday for the kidnapping of 18month-old Stavros Styllis in Limassol last Friday after forensic evidence implicated her in the abduction, police spokesman Andreas Angelides said. The woman reportedly comes from the ‘family environment’. Angelides said that police were looking at the circumstances of the abduction but that investigations indicated that more than one person was involved. “The woman, who is close to the family, was being questioned at the time the toddler was still missing which would indicate

she had an accomplice,” he added. Reports were also confirmed yesterday that in December, a portion of pudding the toddler’s grandmother was about to feed him contained pieces of broken glass and crushed medicine. The episode happened roughly a fortnight after the young boy had been released from the intensive care unit of Makarios Hospital after being in coma. He had been hospitalised from November 20 till November 26, 2012, suffering from encephalitis. The glass and medicine were discovered in the child’s food when his grandmother tasted it just before she was about to feed him. She noticed it did not taste normal. The food serving was checked by a

laboratory abroad which confirmed the cream contained pieces of broken glass and other health hazards. Styllis was taken from his grandmother’s verandah in Ypsonas on Friday morning, sparking a massive hunt for the kidnapped toddler across Limassol, with police helicopter, British bases police, National Guard and Civil Defence, and members of the public all involved. With news of the little boy’s disappearance spreading like wildfire across the internet, by midday on Friday, there were few people in Cyprus unaware of the family’s ordeal. By 3.30pm, a widow who went to Ypsonas cemetery to light a candle found the little boy crying outside a shed, eight hours after he had been taken.


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