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Friday, May 10, 2013
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CBC boss: I see no reason to quit Demetriades says no problem with government but Georgiades not happy with pace of bank reforms By George Psyllides
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ENTRAL Bank of Cyprus (CBC) Governor Panicos Demetriades said yesterday he had no intention of resigning, as a rift with the government appeared to persist over the way he was handling the island’s banking crisis. “There is no such issue,” Demetriades told a news conference. “I said it in the past and I would like to close this matter. As the CBC we did everything possible … to avoid much worse, catastrophic scenarios, which we actually had before us.” In exchange for a €10 billion bailout from the eurozone and International Monetary Fund, Cyprus had been forced to close Laiki, its second biggest bank, and restructure its biggest, Bank of Cyprus (BoC), including imposing losses on deposits over €100,000. Commenting on the CBC’s reportedly strained relationship with the new government, Demetriades said:”There is no problem as far as we are concerned. We would like to see respect of the independence of the Central Bank, which is very important and stems from Cyprus’
obligations to the EU.” Despite the CBC boss’ protestations that everything was fine, the government however appeared to be unhappy yesterday over the delay in the BoC restructuring process. “I would not say I am satisfied with the progress at the BoC,” Finance Minister Harris Georgiades told state radio earlier yesterday. The government did not want the process to drag on until September, as the CBC suggested at some point, the minister said, adding that Demetriades had pledged to wrap up procedures last week, on May 2. “We think we are already late,” Georgiades said, though acknowledging there were practical and legal issues in the way. The minister said cooperation with the CBC boss “could have been much better.” Demetriades and Georgiades met President Nicos Anastasiades yesterday at the presidential palace for two hours but no statements were made afterwards. The CBC chief said there was no problem from the regulator’s side. “Of course we will cooperate but always within the
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FLOODING IN NICOSIA AFTER HEAVY THUNDERSTORM
A FLASH thunderstorm lasting some two hours swept through the capital yesterday afternoon, flooding dozens of basements and trapping motorists in their cars. The downpour of rain and hail started around 2.30pm and was most severe in the suburbs of Strovolos, Dasoupolis and Lakatamia. The Fire Department responded to around 80 calls, a spokeswoman said. Most concerned flooded households
and basements, while firemen rushed to the aid of three persons trapped in their cars from gushing waters on roads. In the Sopaz area, firemen arrived in the nick of time to extract a driver just as his vehicle was about to be swept into a nearby river. The water level had reached the window of his vehicle, reports said. No injuries were reported. The Fire Department also removed debris from a number of locations after sev-
eral trees were felled by strong winds. The Meteorological Service said the area around the island is currently under a low-pressure system. For the next three days, the service forecasts scattered showers and possible flash storms, mostly in mountain areas and the interior. Temperatures will be near normal for this time of the year, ranging from 20C in the mountains to 28C inland (Christos Theodorides)