Cyprus late day updates - Russia rejects all proposals , Turkey may challenge Cyprus use of gas reserves in bailout , Solidarity Fund Plan C vote set for Friday , Capitol control laws incoming , banking law reforms incoming..... Assorted Eurogroup conference calls / call for Cyprus action and proposal with quickness , call for Troika analysis of new Cyprus proposal.....Eurogroup's own plans for Cyprus including closing Cyprus Popular and Bank of Cyprus ( weighing good bank / bad bank with uninsured deposits over 100 , 000 euros taking forth haircut as they head to bad bank ) ........ ATM lines groow longer as cash available becomes less and less - does money run out tonight , Friday morning or does the till run empty at the weekend ?

Evening wrap up on Cyprus......

http://www.globalpost.com/dispatch/news/afp/130321/russia-complains-government-accounts-blocked-cyprus

( Are Russian government accounts tied up as well by the Cyprus bank showdown ? )

Agence France-PresseMarch 21, 2013 02:46

Russia complains government accounts blocked in Cyprus

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Russian Prime Minister Dmitry Medvedev complained Thursday that accounts of Russian government agencies in Cyprus had been blocked as Cypriot Finance Minister Michalis Sarris was set to resume talks in Moscow to secure aid.

In comments released early Thursday, Medvedev warned that Russia would take a "firm" stand on Cyprus because the accounts of governmment structures had been blocked on the island.

"A large number of our open public structures work through Cyprus. They now have money blocked for reasons that are unclear, because the source of that money is obvious. This money is declared everywhere. These include government structures," Medvedev said in an interview published early Thursday on the Russian government website.

"That's why we have to take quite a firm position on the events around Cyprus and regulating the debt of Cyprus," he said.

Sarris was expected to continue talks Thursday after holding meetings with his Russian counterpart Anton Siluanov and First Deputy Prime Minister Igor Shuvalov on Wednesday that failed to produce tangible results as Russia sought lucractive assets in exchange for more help.

The head of the European Commission, Jose Manuel Barroso, was also set to begin talks with Medvedev on Thursday, with Cyprus to top the agenda.

Sarris has vowed to stay in Moscow until some agreement is reached that could help his country's banks avoid bankruptcy and the island from going into default.

The Cypriot finance minister also hopes to ease the terms of a 2.5-billion-euro ($3.2-billion) loan that Moscow afforded Nicosia in 2011 and which matures in 2016.

A spokesman for the Russian finance ministry said Thursday morning that he could not comment on what talks were planned.

Officials familiar with Wednesday's talks were cited by Vedomosti business daily as saying there were no concrete results and that Cyprus did not make any offers to Russia that were immediately attractive, although Russia was analysing them.

The chief executive of Russia's largest lender, Sberbank, German Gref, told Prime news agency late Wednesday that Cyprus had offered it the opportunity to acquire a Cypriot bank but that Sberbank "did not express interest."

EU Plays Misdirection Game While Planning Cyprus Gold Confiscation

March 21, 2013

Print Version

Source: StratRisks

The Cyprus bailout proposal made by the Eurogroup is both economically and politically absurd. But what if the real reason behind the whole Cyprus crisis is the desire to confiscate the country’s gold?
The European Union, the IMF and the ECB are pushing Cyprus into bankruptcy while risking a contagion effect that could lead to the meltdown of the eurozone. European leaders have already bailed out Greece, Portugal, Spain and Italy. Why is the Cyprus bailout so special? Why do the European leaders prefer to push the country into bankruptcy and raid the Cypriot bank accounts instead of saving it?
There are several possible reasons for such a behavior. Either the leaders of the Troika have made a mistake with terrible consequences or they have a plan which is not obvious to outside observers. If the bailout package, combined with a “solidarity levy” on the bank accounts is a bona fide mistake, why aren’t they willing to correct it? The European negotiators insist that Cyprus must provide 5.86 billion euros, knowing that the Cypriot government doesn’t have the money. So far, it looks like the Troika acts within a well established plan. What are they trying to achieve?
Let’s take a look at the gold market. It has been known for several years, that the central banks of the developed world are operating a huge price suppression scheme in the gold and silver markets. The mainstream media is ignoring this fact, but several whistleblowers, like the former Goldman Sachs trader Andrew Maguire, have come up with facts and figures, supporting the hypothesis of a wide conspiracy to suppress the prices of gold and silver. For several years, well known traders and investors like Eric Sprott and John Sinclair have been trying to draw the press’ attention to this problem. According to the latest calculations made by Eric Sprott, it is likely that the US Federal Reserve has almost no physical gold available, so its ability to continue suppressing the gold prices is diminished. If this is true, the Cyprus crisis is a boon to the market manipulators.
Read More @ Source

http://www.zerohedge.com/news/2013-03-21/cyprus-capital-control-solidarity-fund-plan-c-vote-tomorrow-after-rumor-russia-rejec

Cyprus "Capital Control / Solidarity Fund" Plan 'C' Vote Tomorrow After Rumor Russia Rejects All Proposals

Submitted by Tyler Durden on 03/21/2013 16:47 -0400

• European Central Bank

Rumors and news continue to play but some slight weakness after-hours (Treasuries at session highs) suggest fears might have legs. While the Cypriot government submits its bank restructuring (good-bank / bad-bank and capital controls) and Solidarity Fund (CCOs), there will be no vote until tomorrow morning Europe time.

• *CYPRUS SUBMITS LAWS ON CAPITAL CONTROLS, SOLIDARITY FUND
• *CYPRUS SUBMITS LAW ON BANKING REFORMS, SPEAKER SAYS
• *CYPRUS PARLIAMENT TO DISCUSS NEW LAWS TOMORROW, CYBC SAYS

All of this after rumors of a 'rejection of all Cyprus government proposals' by Russia was the talk on desks and that more than a few Cyprus MPs believe the bank bill is too strict and needs more discussion. The ECB/ELA deadline looms with the path/hurdles now "Cyprus discussion" - "Cyprus vote" - "Troika analysis" - "ECB / EU Agreement" - and theoretically find a (non-Russian) funder for the CCO - before Tuesday's European open. Stay long Brussels and Nicosia caterers.

and.......

http://www.zerohedge.com/news/2013-03-21/eurogroup-concludes-inconclusive-call-cyprus-dismisses-deposit-levy-moar-troika-need

Eurogroup Concludes 'Inconclusive' Call; Cyprus Dismisses Deposit Levy; Moar Troika Needed

Submitted by Tyler Durden on 03/21/2013 15:59 -0400

• None

Surprise! No decision came out of the Eurogroup conference call (and none is expected this evening) as:

• *EUROGROUP EXPECTS CYPRUS TO SUBMIT NEW RESCUE PROPOSAL QUICKLY and
• *EUROGROUP SAYS IMPORTANT TO GUARANTEE DEPOSITS UNDER EU100,000
• *EUROGROUP SAYS TROIKA ANALYSIS NEEDED ON NEW CYPRIOT PROPOSAL

However, Cyprus has decided that it will only undertake small deposit levy (if at all) and prepares to present a new proposal. And just to rub some salt in the wound:

• *CYPRUS CUT TO CCC FROM CCC+ BY S&P; OUTLOOK NEGATIVE

So, Laiki has only hours of liquidity; the government hasn't voted on a proposal yet; Eurogroup won't act until Troika analyzes the proposal; and Cypriot Central banker wants major capital controls.

http://www.zerohedge.com/news/2013-03-21/eu-weighs-40-haircut-uninsured-cypriot-deposits-bad-bank-plan

EU Weighs 40% Haircut On Uninsured Cypriot Deposits In Bad-Bank Plan

Submitted by Tyler Durden on 03/21/2013 14:48 -0400

• Bad Bank
 
• Eurozone
 
• headlines

More details are appearing on the latest and greatest plan in the shambles to solve Cyprus' (and Europe's unsolvable) problem. It appears the European Group is implicitly declaring economic war on the 'wealthy' depositors (we noted here non-domestic depositors dominated recent inflows) as these headlines hit:

• *EURO AREA SAID TO WEIGH CLOSING CYPRUS POPULAR, BANK OF CYPRUS
• *EURO AREA SAID TO WEIGH GOOD BANK, BAD BANK FOR CYPRUS BANKS
• *UNINSURED DEPOSITS COULD GO TO CYPRUS BAD BANK, FACE 40% LOSS

We assume followed rapidly by some eurozone law-breaking capital controls to stop the remaining 60% flooding out instantaneously...

http://www.zerohedge.com/news/2013-03-21/bad-news-atm-limits-imposed-good-news-they-still-have-cash

The Bad News: ATM Limits Imposed; The Good News: They Still Have Cash

Submitted by Tyler Durden on 03/21/2013 13:41 -0400

Just as we predicted, it seems Cyprus is rapidly escalating down the path we feared. The latest step:

Cyprus Popular Bank announces restrictions on ATM withdrawal to EUR 260 per customer per day

Bt on the bright side, for the next few hours, they still have liquidity... We just hope the steps we outlined get stalled before this really escalates.

• *CYPRUS POP SETS DAILY LIMIT OF EU260 ON WITHDRAWALS:KATHIMERINI

http://www.zerohedge.com/news/2013-03-21/cyprus-popular-bank-only-few-hours-liquidity-left

Cyprus Popular Bank: "Only A Few Hours Of Liquidity Left"

Submitted by Tyler Durden on 03/21/2013 13:08 -0400

• Bad Bank

It appears, based on government officials, that things are going a little critical in Cyprus. Following rumors of the closure (restructuring) of good/bad bank assets for Cyprus Popular Bank, we get this news:

• *CYPRUS'S NEOFYTOU SAYS NEW FACTS RELATED TO CYPRUS POPULAR BANK
• *CYPRUS HASN'T HAD ANY FURTHER NEWS FROM RUSSIA: OFFICIAL
• *CYPRUS POPULAR BANK HAS "FEW HOURS OF LIQUIDITY LEFT": OFFICIAL'

The view from Cyprus and Greece......

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/03/2013_489278

Eurogroup says new Cypriot plans must meet with troika approval, EU hopeful The Eurogroup has said on Thursday night it will wait for clearance from the troika on the legislation drawn up by Cyprus to secure the financing it needs in order to agree a bailout with the eurozone and International Monetary Fund. "The Eurogroup stands ready to discuss with the Cypriot authorities a draft new proposal, which it expects the Cyprus authorities to present as rapidly as possible,» a statement read following a conference call involving eurozone finance ministers. "The Eurogroup would subsequently, on the basis of a Troika analysis that needs to be undertaken, be prepared to continue negotiations on an adjustment program, while respecting the parameters defined earlier by the Eurogroup,» the minister said. "After the conclusion of such negotiations the Cyprus authorities should begin legislating the elements of such an agreement.  The Eurogroup stressed the importance of fully guaranteeing deposits below 100,000 euros in its statement. The Europeean Commission also welcomed the moves by Nicosia on Thursday, which included plans to creation a national solidarity fund. "We appear to be seeing an improved spirit of cooperation on the part of the Cypriot authorities,» said an EU spokesman. «In particular we welcome the Cypriot authorities' assurances that they will present in detail to the Troika their alternative proposal for covering the part of Cyprus' financing needs outside of the agreed financing envelope. Our staff will assess this proposal carefully as of tomorrow morning." The EU officials also stressed that Brussels welcomes the fact that the Cypriot government is preparing legislation to wind down Cyprus Popular Bank and impose capital controls when lenders reopen next week. "We are conditionally satisfied that the bills on bank resolution and restriction of capital movements are moving through the legislative process. "We now need to move into top gear and work intensively with the Cypriot government and our Troika partners to design a viable alternative solution that can be acceptable to all euro area member states." http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_22/03/2013_489282 Schaeuble sceptical at Cypriot proposal German Finance Minister Wolfgang Schaeuble expressed his scepticism at the Cypriot government's proposal for raising billions of euros during a meeting of Germany's coalition parties on Thursday afternoon, newspaper Bild reported. Citing participants at the meeting, the German newspaper reported in its Friday edition that Schaeuble had said he had deep doubts and «cosmetic touches alone» would not be enough. Cyprus must «move and seriously save», he added. The Cypriot government, facing a collapse of its financial system, on Thursday proposed a «Solidarity Fund» based on revenues from hydrocarbon exploitation, bonds and other assets to help it raise billions of euros to clinch a European Union bailout. http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/03/2013_489264 Gov’t drafting bill for Cyprus fallout  Tsipras decries lack of solidarity for Nicosia, snubs censure motion against FinMin Prime Minister Antonis Samaras remained tight-lipped on Thursday about developments in Cyprus though behind the scenes government officials were reportedly preparing legislation aimed at protecting deposits in branches of Cypriot banks based in Greece in the event that lenders in the Eastern Mediterranean island nation collapse. The government has earmarked an estimated 600 million euros for the recapitalization of Cypriot banks in Greece. The conservative-led administration avoided taking a clear stance on the upheaval in Cyprus for another day though the leader of junior coalition partner Democratic Left, Fotis Kouvelis, insisted that a contentious eurozone proposal for a tax on Cypriot bank deposits be revoked. Kouvelis also called on European countries to show solidarity to Cyprus. The leader of leftist opposition SYRIZA, Alexis Tsipras, condemned the government for failing to show solidarity with Nicosia but said he would not back a motion for the censure of Finance Minister Yannis Stournaras proposed by the right-wing anti-bailout party Independent Greeks. Still Tsipras was scathing in his criticism, claiming that “Stournaras has aligned himself absolutely with the threats and blackmail of [German Finance Minister Wolfgang] Schaeuble against the Cypriots.” He asked what the government would do if the troika demanded a bank deposit tax in Greece. “Would they agree?” Tsipras said he would not back the censure motion as “if there is an issue of the government’s adequacy. That is for the people to judge.” He also lashed out at Northern European countries, calling them “gangsters” trying to colonize countries in the south. and........ http://www.cyprus-mail.com/bailout/government-achieves-consensus-solidarity-fund/20130321 Government achieves consensus on Solidarity Fund Published on March 21, 2013 + - Text size Follow the mail on Twitter. TOPIC TAGS bailout, Cyprus,solidarity fund RELATED CONTENT President Nicos Anastasiades meeting with party leaders at the Presidential Palace THE GOVERNMENT has achieved consensus on the setting up of an Investment Solidarity Fund in a bid to raise the required €5.8 billion that would unlock the EU/IMF’s €10 billion financial assistance package for Cyprus. The creation of the Fund comes in the wake of parliament’s rejection of a controversial tax levy on banking deposits agreed by the Cypriot government and Eurogroup last Saturday. “Following a proposal by the President of the Republic there was a consensus reached and a unanimous decision was taken for the establishment of an Investment Solidarity Fund. The proposal is currently undergoing legal and technical processing by the Law Office of the Republic,” said government spokesman Christos Stylianides in a written statement. President Nicos Anastasiades met with party leaders this morning to discuss a ‘plan B’ that would save the economy from collapse. Stylianides said the president fully respected parliament’s rejection of the bank levy, and was continuing with the collective effort to find solutions, consulting with heads of state and government, as well as with economic and political actors at home and abroad. The spokesman said it was “within this framework and in a spirit of consensus and mutual understanding” that today’s meeting between the president and party leaders was held and which led to the unanimous decision on the formation of an Investment Solidarity Fund.   “For this purpose draft, legislation is being prepared by the Law Office of the Republic, which will be presented before the Council of Ministers in a meeting today at 6pm,” he added. Stylianides called on everyone to show calm and act responsibly so as not to “disturb the spirit of consensus that exists among the political leaders”. “The president and the government assure the people of Cyprus that the leadership will rise to the occasion and all of us together will lead the country out of the impasse,” he said. The levy on insured and uninsured depositors was overwhelmingly rejected by the Cypriot parliament last Tuesday. Excluded from the international markets, Cyprus applied last June for financial assistance from the EU bailout mechanism, after its banks took losses of €4.5 billion (amounting to 25 per cent of the island’s GDP) following the Greek sovereign debt haircut. The island’s banks have been closed since last Saturday as the government and parties try to find a way out of the crisis. The European Central Bank has given Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its banks and inevitable collapse. http://www.cyprus-mail.com/cyprus/eurozone-urges-cyprus-propose-how-reach-bailout/20130322 Eurozone urges Cyprus to propose how to reach bailout By Jan Strupczewski Published on March 22, 2013 + - Text size Follow the mail on Twitter. TOPIC TAGS Cyprus RELATED CONTENT CB governor urges quick action on Cyprus Cyprus seeks EU money laundering audit Troika could be back in Cyprus next week BRUSSELS, March 21 (Reuters) - Eurozone finance ministers urged Cyprus on Thursday to say how it could reach a deal with international lenders that would save it from bankruptcy after the Cypriot parliament rejected the conditions of a bailout offer. Since the terms were rejected, the ministers expected Cyprus to propose how it wanted to change the bailout, but the main parameters needed to stay the same, Jeroen Dijsselbloem, who chairs the ministers' meetings, said in a statement. "The Eurogroup would subsequently, on the basis of a Troika analysis that needs to be undertaken, be prepared to continue negotiations on an adjustment programme, while respecting the parameters defined earlier by the Eurogroup," he said after a teleconference with ministers. The Troika are the representatives of the International Monetary Fund, the European Central Bank and the European Commission. Cypriot lawmakers this week rejected an unprecedented tax on bank deposits proposed as part of a 10-billion euro bailout from the EU and IMF. Euro zone ministers said on Monday the one-off levy on deposits should only be applied to savings higher than 100,000 euros and they repeated that on Thursday. "The Eurogroup reaffirms the importance of fully guaranteeing deposits below 100,000 in the EU," the statement said. The Cypriot government said party leaders had agreed to create a "solidarity fund" that would bundle state assets as the basis for an emergency bond issue, but the speaker of parliament, Yiannakis Omirou, insisted a revised levy on uninsured bank deposits was not on the table. Parliament will resume on Friday morning. The governor of the central bank said it would impose a plan to avoid bankruptcy at the second biggest lender, Cyprus Popular Bank, but it remained unclear how measures would work. The government submitted a bill seeking the power to impose capital controls on banks, a type of measure unseen since before the country joined the EU single currency bloc five years ago. European Commission spokesman Simon O'Connor said there appeared to be "an improved spirit of cooperation" by the Cypriot authorities. "In particular we welcome the Cypriot authorities' assurances that they will present in detail ... their alternative proposal for covering the part of Cyprus' financing needs outside of the agreed financing envelope. Our staff will assess this proposal carefully as of tomorrow morning," he said. "We are conditionally satisfied that the bills on bank resolution and restriction of capital movements are moving through the legislative process ... These laws ... are absolutely essential at the current juncture," O'Connor added.  http://www.cyprus-mail.com/bailout/central-bank-says-keep-2nd-largest-lender-business/20130321 Central Bank says to keep 2nd largest lender in business Published on March 21, 2013 + - Text size Follow the mail on Twitter. TOPIC TAGS bailout, Cyprus, Laiki RELATED CONTENT PreviousNext CYPRUS will take measures to consolidate its banking sector, including steps to avoid bankruptcy at its second largest lender, Popular Bank , Central Bank Governor Panicos Demetriades said on Thursday. "By establishing this legal framework, resolution measures will be imposed on Popular Bank so that it will be in a position to continue to offer banking services to its clients next Tuesday," when banks are due to reopen, he told reporters. “Otherwise, the Popular Bank will be led to immediate bankruptcy and termination of its operation with catastrophic consequences for the workers and depositors, our banking system and the country’s economy. Demetriades did not elaborate, but said the steps would protect deposits of up to €100,000. At the same time the Popular Bank imposed a €260 per day limit on ATM withdrawals on Thursday to cope with high demand, the island's second largest lender said in a statement. Customers queued to withdraw funds on Thursday on widespread rumours that the bank was to be closed down, later denied by the central bank. News of the lender’s imminent restructure prompted employees to converge outside parliament to protest. http://www.cyprus-mail.com/cyprus/turkey-may-challenge-cypriot-use-gas-reserves-bailout/20130321 Turkey may challenge Cypriot use of gas reserves in bailout Published on March 21, 2013 + - Text size Follow the mail on Twitter. TOPIC TAGS Cyprus RELATED CONTENT Parliament rejects deposit tax for bailout TURKEY could challenge any move by Cyprus to speed up offshore natural gas exploration as a way of attracting desperately needed investment to save its teetering economy, senior Turkish officials said on Thursday. The EU has given the island until Monday to raise the billions of euros it needs to clinch an international bailout or face the collapse of its financial system and likely exit from the euro currency zone. Cyprus is in talks with Moscow over possible Russian investments. Cypriot Finance Minister Michael Sarris has identified the divided island's offshore gas riches as one area in which Russia could invest. "This resource belongs to two communities and the future of this resource can't be subject to the will of southern Cyprus alone. (We) may act against such initiatives if necessary," one of the Turkish officials told Reuters. "The exclusive use of this resource ... by Southern  Cyprus is out of question ... and unacceptable." Cypriot efforts to monetise as yet undeveloped offshore gas fields and position them as a vital source of energy for Europe have raised tensions with Turkey, which demands a joint approach and a share of the revenue. "We are discussing all legal means ... We could take the case to the European Union but we will use all political and legal channels," the official said without elaborating. Moscow would tighten its grip on European supplies if it invested in natural gas fields in the Mediterranean south of Cyprus as part of a deal to solve the island's financial crisis. So far, some 200 billion cubic metres of natural gas worth $80 billion at current prices have been discovered in the Aphrodite gas field in Cypriot waters, although the figures still have to be audited. That would be enough to cover around 40 percent of the European Union's annual gas consumption. Cyprus hopes to start exporting in 2018, but energy analysts say extracting the gas will prove costly and slow, and Cypriot supplies may run into a global glut, with shale gas plentiful by then in North  America, Russia and even Europe. (R) Summary of the day from The Guardian liveblog...... Closing summary With Cypriot MPs delaying the vote until tomorrow morning, I'm going to stop. Here's a very brisk round-up after another dramatic day: • Cyprus's parliament will vote on new legislation on Friday morning that will radically restructure its biggest banks. The decision is expected to protect smaller depositors at Laiki, its second biggest bank, but those with over €100,000 faces the possibility of large losses (see here onwards) • MPs will also consider legislation to give the power to impose capital controls, limiting cash transactions in Cyprus. • The move comes after the European Central Bank set Cyprus a deadline of next Monday to find €6bn to quality for its bailout package. Fail, and the ECB would withdraw its emergency liquidity support. See here onwards for the statement, and here for some analysis. • Rumours that Laiki was about to collapse swept Cyprus. This lead to more customers queuing at its cashpoints to withdraw funds (see hereand here) • Angry bank staff also held a demo near to the Cyprus parliament, demanding answers about their future. There were isolated scuffles with police, but otherwise the protests were calm (latest photos here) • The Eurogroup said tonight that it was ready to discuss a new proposal with Cyprus, and reiterated the importance of protecting savings up to €100,000. The statement is here. • This morning, Eurogroup president Jeroen Dijsselbloem said he took responsibility for the decision that Cyprus would impose losses on savers with less than €100,00 in the bank (see here onwards) • The latest economic data showed that the euro economy continues to shrink, with France's private sector contracting particularly sharply (details here) • And S&P downgraded Cyprus by one notch to CCC (see here)