Saturday, March 23, 2013

Cyprus’s Bailout Plan Meets With Skepticism -

Cyprus’s Bailout Plan Meets With Skepticism -

 "NICOSIA, Cyprus — Lawmakers took steps late Friday to revise a formula for obtaining a bailout of Cyprus’s banks but faced strong signals that the plan would not pass muster with international lenders."

"When euro zone finance ministers negotiated the original bailout terms last weekend, Cypriot officials had resisted limiting the tax to large accounts, evidently to avoid damaging the country’s reputation as a haven for wealthy banking clients. Many of the wealthiest citizens of Russia have euro-denominated bank accounts in Cyprus, which is one reason that euro zone finance ministers have taken such a hard line."

"The Russian prime minister, Dmitri A. Medvedev, said on Friday at a joint news conference in Moscow with José Manuel Barroso, the president of the European Commission, that his country was not walking away from Cyprus.
Instead, Mr. Medvedev said, Russia will wait until a broader bailout deal is done before extending additional help.
“Regarding our participation in this process, we haven’t shut the doors,” Mr. Medvedev said. “Of course we’ve got our own economic interests at stake.”
Additional efforts to help Cyprus will come “only after a final settlement scheme” involving the European Union, he said.
The situation in Cyprus “is very dramatic and should be addressed as soon as possible,” Mr. Medvedev added."

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