CYPRUS MAIL

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Cyprus Mail www.cyprus-mail.com

Tuesday, March 26, 2013

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CYPRUS

SPORT

GE REPORTAGE

Money flew out of Cyprus during bailout wranglings

Nervy night in store for England and Spain

The family behind the Bond ond series of filmss centre tre

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Charges for those to blame for crisis President announces criminal investigators to be appointed, temporary controls on moving money By Stefanos Evripidou

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HE COUNCIL of Ministers will appoint criminal investigators in the coming days with a “clear and wide-ranging mandate” to find those responsible for bringing Cyprus to the brink, President Nicos Anastasiades said last night. In a televised address to the nation on his return from Brussels where he reached political agreement with the Eurogroup on a Cyprus bailout, the president said he understood the “justifiable sense of anger” felt by people regarding the responsibilities of those who led Cyprus to its current predicament. Anastasiades confirmed that Cyprus will introduce “very temporary” restrictions on capital flows when banks reopen this week. “The central bank will implement capital controls on transactions,” he said, adding, “I want to assure you that this will be a very temporary measure that will gradually be relaxed.” After his late night televised address, Anastasiades held a meeting with central bank governor Panicos Demetriades at the Presidential Palace. The president said the bailout deal reached overnight Sunday to Monday in frantic talks with the island’s partners in the eurozone was “painful” but the best under the circumstances. Anastasiades held marathon talks with European Council and Commission Presidents Herman Van Rompuy

and Jose Manuel Barroso, the IMF’s Christine Lagarde and representatives of the European Central Bank before a deal was banged out which the Eurogroup rubber stamped in the early hours of Monday morning. “The agreement that we reached is difficult but, under the circumstances, the best that we could achieve,” said the president. Anastasiades said failure to reach agreement on a rescue package at the weekend would have led to the collapse and bankruptcy of the state. Regarding the high-stakes Brussels visit, he noted there were both “difficult” and “dramatic” moments. “Cyprus was a breath away from economic collapse. Our choices were not easy nor the environment ideal. But through tough negotiations, persistence and a sense of responsibility we reached a result that secures the country’s prospects.” He added: “Together, the people and political leadership fought a hard battle from which we came out wounded, but upright and determined to make a fresh start.” Anastasiades said the country can now leave behind the uncertainty and anxiety witnessed in recent months and look to the future with optimism. “From tomorrow, begins a new era for Cyprus. In the next few days, tough decisions will be implemented,” he said, adding, “We have an obligation to stand on our feet and get out of the vicious

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All banks to remain closed till Thursday By Elias Hazou

A parade by mostly students was held as usual yesterday in central Nicosia to mark Greek Independence Day. Those taking part saluted acting president Yiannakis Omirou as they passed him on Byron Avenue (Christos Theodorides)

ALL banks will remain closed until Thursday, the Minister of Finance announced last night. Earlier it was just Bank of Cyprus and Laiki that were to remain closed for a further two days; the change was made last night for the smoother operation of the entire banking sector. According to sources, the late night decision to stall the opening of the island’s smaller banks followed a disagreement between European Commission and European Central Bank (ECB) officials on how to adjust the banking system in lieu of the restructuring of Laiki and its partial merger with Bank of Cyprus. In a separate communiqué, the Central Bank said the agreement at the Eurogroup meeting “ensures that Cyprus has avoided default and the associated consequences this would have had for the country. The agreement has also avoided the disorderly default of Laiki Bank”. It added: “The Bank of Cyprus, which will be restructured and fully capitalised using the relevant legislation, will acquire the performing loans, other assets and the insured deposits of Laiki Bank.” The initial go-ahead for the banks’ reopening came after a formal decision yesterday by the European Central Bank (ECB) to give Cypriot banks access to emergency central bank funding after the country struck a bailout deal. Last week, the ECB had said it would cut off emergency funding to Cypriot banks if the country failed to agree on a bailout from international lenders by Monday. “Today, the Governing

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