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Friday, March 8, 2013
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CYPRUS
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State insists there will be no haircut Nicosia also rejects an increase in the levels of the island’s corporate tax By George Psyllides
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HE government yesterday made it clear to international lenders that a haircut on bank deposits was not up for discussion, as the two sides disagree on the matter of debt sustainability. Nicosia has also rejected an increase in the island’s corporate tax. The two issues were raised by international lenders during a meeting with President Nicos Anastasiades. “The President of the Republic reiterated the government’s determination to proceed with the conclusion of the loan agreement as swiftly as possible,” Finance Minister Michalis Sarris said after the meeting. At the same time Anastasiades repeated which issues were not up for discussion, the minister said. “Any discussion about haircuts or other demands regarding bank deposits is off the table; this is a very crucial issue,” Sarris said. “I personally believe that most of them (troika officials) know that such a move, even discussing a haircut, which has not taken place anywhere else, poses great dangers.” The minister added that Cyprus is already paying a heavy price because of the haircut talk. Around €1.7 billion has been withdrawn from the island’s banks in January when talk of a haircut picked up pace. It appears however, that the troika was now raising the issue of the island’s cor-
porate tax, something it did not do before. Sarris said the government’s position was that the stability of its tax system was one of the cornerstones of the economy. “For us there is no question of change,” the minister said. Sarris said Cyprus was trying to find alternative ways, either through cutting expenditure or increasing revenues “to make debt management more effective.” “Our positions are crystal clear; we believe we can find other ways to bring our debt where it should be so that markets consider it manageable,” the minister said. In the past six months, Sarris said, the state’s fiscal performance was better than what was provided in a preliminary deal agreed with international lenders. “We tell them that while we had a 4.0 per cent primary surplus -- the surplus that helps us pay the interest -this can become 4.5 per cent or 5.0 per cent without additional burdens, something, which allows you not only to pay the interest but also part of the debt,” Sarris said. The minister said there will not be additional measures that will include cuts in wages and pensions. Meanwhile, European Central Bank President Mario Draghi yesterday urged the government to look at how it was combating money laundering. “It is very important that the Cypriot government takes this opportunity to revisit the anti money-
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CARNIVAL CELEBRATIONS KICK OFF AROUND CYPRUS
Cypriots celebrated Tsiknopempti (stinky Thursday) yesterday, eating lots of meat and getting into the swing of the carnival celebrations and playing traditional games (Christos Theodorides) SEE STORY PAGE 6
Man faces jail for laughing too loudly in own home A MAN from Long Island, New York, is facing up to 30 days in jail and a $500 fine after a neighbour complained to police he was laughing too loudly, his lawyer said this week. Police issued Robert Schiavelli, 41, two tickets for disturbing the peace for laughing out the window of his home in Rockville Centre on Long Island at about 6pm on February 12 and February 13, his lawyer said. Schiavelli said the neighbour regularly mocks him for a neurological disability, and the best response to those taunts is laughter. “He just ridicules me all the time and the only thing I can come up with is laughing,” Schiavelli said in a tele-
phone interview. His lawyer, Andrew Campanelli, said his client has frequent seizures as a result of neurological impairments but denied his laugh is loud or boisterous. “He’s like a big teddy bear, he’s got a low laugh,” Campanelli said. Schiavelli lives with his mother, Suzanne Schiavelli, who said that he had a “fairly loud” laugh. “I think it’s infectious. It’s cute,” she said. “When my husband died, we said to ourselves, ‘We’re going to make sure to laugh every day and make the most of life’.” Daniel O’Hanion, the neighbour who made the complaint, could not be reached for comment.
O’Hanion and Schiavelli live in adjacent private homes about 20 feet apart, separated by two driveways. The Rockville Centre Police Department said they issued the summonses after receiving complaints about an ongoing pattern of noisemaking. “On two occasions, police actually observed this individual creating a disturbance directed at neighbours and in violation of local law,” police said in a statement. Schiavelli’s mother said O’Hanion often calls her son a “retard,” parodies his speech and mocks his walk. Relations worsened when they had builders in to renovate their house over O’Hanion’s objections, she said.