POMPEII STORIES
OPINION
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How an ancient Fido speaks to the life of a modern city
Troika shock therapy has killed our tax haven model
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www.cyprus-mail.com
March 24, 2013
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COFFEESHOP: THE TERRIBLE PRICE OF PRIDE AND STUPIDITY INSIDE
The Cyprus Mail will be printing on Monday World UK endures yet more horrendous weather 9
Reportage As everyone has an iSomething is Apple losing its cool? centre
Property London developments are walking on water 24
Sport Hodgson calm ahead of crunch clash back
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Mad scramble to save BoC
20% levy on uninsured BoC deposits, reports say Rehn: only hard choices and a tough future left Anastasiades in Brussels today for crunch meeting
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HERE were mixed reports last night concerning the island’s bailout, with one report suggesting a deal had been struck while another said Cyprus and international lenders were not even close to an agreement. There was no official confirmation of either report by the time the Cyprus Mail went to print. Earlier, Reuters reported Cyprus had conceded to a one-off levy on deposits over €100,000 to satisfy European partners and seal an 11thhour bailout deal to avert financial collapse. Quoting an unnamed senior government official, Reuters said Nicosia had agreed with EU/IMF lenders on a 20 per cent levy over and above €100,000 at No. 1 lender Bank of Cyprus, and four per cent on deposits over the same level at other banks. However, an hour or so later, the Cyprus News Agency, also quoting an unnamed Cypriot official, said the two sides were not even close due to the stance of the IMF, which tabled new demands “every half an hour”. Reports suggested that the troika was focusing on the issue of resolving the Bank of Cyprus. Earlier yesterday, Finance Minister Michalis Sarris, reported “significant progress” in talks with international lenders, with the clock running down to an end of Monday deadline for Cyprus to clinch a bailout deal with the
EU or lose emergency funding for its stricken banks and risk tumbling out of the eurozone. His counterparts in Europe’s 17-nation currency union scheduled talks in Brussels for Sunday evening to see if the numbers add up, and the EU’s Economic Affairs Commissioner Olli Rehn said progress was being made towards a solution. Talks with the lenders continued at the presidential palace before a meeting between President Nicos Anastasiades and party leaders. Anastasiades tweeted in the afternoon: “We are undertaking great efforts. I hope we have a solution soon.” The DISY leader was due to lead a delegation to Brussels, also today, to meet heads of the EU, the European Central Bank and International Monetary Fund, in a sign a deal might be near. “Hopefully by tomorrow in Brussels we will have the agreement of our partners,” Averof Neophytou, DISY deputy chairman, told reporters. Government officials held talks through the day at the finance ministry with Cyprus’ ‘troika’ of lenders - the EU, ECB and IMF. Angry bank employee demonstrators outside chanted “resign, resign!” Sarris said yesterday talks with the troika were centred on a possible levy of around 25 per cent on savings over and above €100,000 at failing Bank of Cyprus.
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Biggest demo yet: thousands of bank workers demonstrated across Nicosia yesterday
Distraught and fearful bank workers fill the streets By Poly Pantelides IN WHAT has been the biggest protest yet, bank workers demonstrated in their thousands yesterday as talks continued to avert Cyprus’ financial meltdown and resolve the banking crisis. Protesters gathered in the afternoon outside the offices of banking union ETYK, which had said that it had become “obvious” that the
banking system and the economy was being driven to destruction. On the previous night, parliament approved bills on the resolution of banks and appeared ready to tax big savers, in a dramatic turnaround following Tuesday’s overwhelming rejection of a bank levy on all deposits agreed with the troika of lenders last week. As negotiations and talks continued throughout yesterday, protesters marched
from ETYK’s offices to the presidential palace, later moving on to the finance ministry and reaching the (empty) House of Representatives by evening. Amid the sea of people, ETYK members expressed anxiety over the resolution of Popular Bank, their fears that the Bank of Cyprus would also be restructured and the uncertainty over their provident or pension
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