http://www.guardian.co.uk/business/2012/jun/25/cyprus-leader-remedies-bailed-out-countries
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_24/06/2012_448732
Cyprus leader unhappy with remedies forced on bailed-out countries
President Demetris Christofias likens the EU, European Central Bank and IMF to a 'colonial force'
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Cypriot president Demetris Christofias blames the exposure of the island's banks to Greece for its troubles. Photograph: Georges Gobet/AFP/Getty Images
Less than 24 hours before Cyprus resorted to the European rescue fund, its President Demetris Christofias lambasted the fiscal remedies meted out by the troika – the EU, European Central Bank and IMF– on the countries it had sought to save.
The Cypriot leader told the Sunday Vima newspaper that, more often than not, the troika had operated like a "colonial force", pushing austerity measures and neo-liberal policies on nations that had asked for help. The result had been disastrous for Greece and, by extension, Cyprus whose banks had been heavily exposed to the debt-stricken country.
His harsh words reflect the reluctance of Cyprus to resort to the mechanism. Senior officials have openly expressed reservations about the conditions that might be slapped on the island in return for financial assistance.
"Cyprus is facing the prospect of entering [a rescue] mechanism not because of the fiscal state of the economy, but because of the need to recapitalise Cypriot banks which have important exposure to the Greek economy," said the veteran communist.
"In every downgrade of the Cypriot economy, the exposure of our banks to Greece is portrayed as the main cause." In all other ways, the Cypriot economy was robust, he said.
"The economy of Cyprus continues to have healthy foundations despite the problems, distortions and inequalities accumulated over the years."
While refusing to stipulate just how much it will request in EU financial assistance, the Nicosia government asserted that the crisis-hit Mediterranean island would continue to pursue efforts to secure a bilateral loan outside the EU, either from Russia or China.
"One doesn't preclude the other," said the government spokesman Stefanos Stefanou.
and......
Cyprus seeks loan amid bailout concern
The minister, who is also in charge of energy affairs, is in China with Michael Sarris, chairman of Cyprus Popular Bank Pcl, the east Mediterranean island’s second-largest lender, Sylikiotis said in a telephone interview on Sunday. “When there is something that can be announced we shall do so,” Sylikiotis said. He declined to give details on the size of any possible Chinese loan. The Cypriot government is being pressured by the European Union to seek a bailout package worth as much as 10 billion euros ($12.6 billion). The nation is also pursuing a loan from Russia to improve its bargaining position after receiving a 2.5-billion-euro payment last year. Cyprus decided in May to underwrite the issue of 1.8 billion euros in preference shares of Cyprus Popular, which has until June 30 to meet capital requirements set by the European Banking Authority. The government needs as much as 6 billion euros over two years to support the nation’s banks, Sarris said on June 15. The need to recapitalize Cypriot banks that have been hit by losses on Greek debt is the reason the island nation is facing a possible bailout, President Demetris Christofias told To Vima in an interview on Sunday. The so-called troika (European Commission, the European Central Bank and International Monetary Fund) has operated like a “colonial force” by forcing austerity measures and neo-liberal policies on bailed-out countries, the newspaper cited Christofias as saying. [Bloomberg] |
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