Euro zone crisis
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Cypriot President Nicos Anastasiades threatened to resign during a heated exchange with European Union and IMF officials over a rescue package for his country, a senior official taking part in the negotiations said on Sunday.
Anastasiades objected to a proposal that two Cypriot banks be shut down if Cyprus is to meet the terms of the bailout being offered by the EU and IMF, the official said.
"He offered to resign," the source said, describing the meeting, which included IMF Chief Christine Lagarde, European Central Bank President Mario Draghi, European Council President Herman Van Rompuy and other top officials, as tense.
The EU and IMF are offering Cyprus a 10 billion euro bailout package as long as the government can come up with 7 billion euros itself, largely through the restructuring of its banks, a process that will mean imposing a big levy on deposits over 100,000 euros. -
Senior offficial involved in the discussions confirms Anastasiades did threaten to resign, angry about proposal to shut 2 Cypriot banks-RTRSby Luke.Baker via twitter 3/24/2013 9:45:48 PM -
Based on Okun's Law, 20% shrinkage in economy = 10% increase in unemployment. Now c15%, So perhaps 25% unemployment. yikes @DefunctEcon:by Hugo Dixon via twitter 3/24/2013 10:51:14 PM -
Draft deal would see secured deposits in Laiki moved to Bank of Cyprus and shutting Laiki, sources say. Bank of Cyprus also to be hitby Luke.Baker via twitter 3/24/2013 11:41:07 PM
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Looks like Bank of #Cyprus will assume all of Laiki's ELA obligations, which is 9 bln euros, to add to BoC's existing 1 bln euro ELAby Luke.Baker via twitter 3/25/2013 12:00:56 AM
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#Eurogroup press room at 0230, just before news conference. Lot of tired eyes. http://pbs.twimg.com/media/BGKn77vCYAEDyWW.jpg
by Luke.Baker via twitter 3/25/2013 1:32:24 AM -
Any capital controls introduced in #Cyprus will be "temporary, proportionate and non-discriminatory" -- #eurogroupby Luke.Baker via twitter 3/25/2013 1:54:01 AM
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I will be on Sky News Adam Boulton Show at 1.15pm GMT to discuss #Cyprusby Hugo Dixon via twitter 3/25/2013 12:18:43 PM
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Barnier says capital controls may only last a few days. Far better to keep banks closed a couple of days and then open w/ controlsby Hugo Dixon via twitter 3/25/2013 12:21:41 PM
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Cyprus rescue raises new questions about euro's long-term survival
Alan Wheatley, Global Economics Correspondent, says disaster in Cyprus may have been averted, but the messy bail out raises "new questions about the single currency's long-term viability."
Read the full piece here -
Eurogroup comments hit Europe shares, Bund futures rise
LONDON, March 25 (Reuters) - European shares trimmed gains on Monday while German Bund futures hit a session high, after the head of the Eurogroup said a Cyprus bailout deal could be a new template for resolving euro zone banking problems.
The pan-European FTSEurofirst 300 index trimmed gains to trade just 0.1 percent higher at 1,190.16 points, having been up 0.9 percent earlier in the session, while the euro zone's blue-chip Euro STOXX 50 index turned negative to fall 0.5 percent.
German Bund futures, a safe haven asset sought at times of market stress, rose to a session high of 144.65, up 28 ticks on the day.
Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, told Reuters and the Financial Times that the Cyprus rescue programme represented a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors. -
1 Nothing much seems to be happening in #cyprus because they can't decide when to open banks and whether to impose capital controls.by Hugo Dixon via twitter 3/25/2013 3:36:20 PM
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2 Instead of wasting time, #cyprus should shut banks for 2 > days, sort out all technicalities and then reopen without controls.by Hugo Dixon via twitter 3/25/2013 3:36:39 PM
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3 #ECB should take control of situation as it is lender of last resort #cyprusby Hugo Dixon via twitter 3/25/2013 3:36:44 PM
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4 Focussing capital controls on Bank of #Cyprus better than system wide freeze. But far better not to have them at allby Hugo Dixon via twitter 3/25/2013 3:36:51 PM
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I'm on #CNBC just after 4pm GMT to talk #cyprusby Hugo Dixon via twitter 3/25/2013 3:38:04 PM
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Last-ditch Cyprus deal brings little relief, much uncertainty
Karolina Tagaris and Michele Kambas send us this report from Nicosia:
The European Union might claim to have come to the rescue of Cyprus with a last-ditch deal to bail it out, brokered in frantic overnight talks in Brussels, but gratitude was in short supply in Nicosia on Monday.
The events of the past 10 days, in which Cypriot leaders and their partners in Europe's 17-nation euro zone contemplated raiding the accounts of ordinary Cypriots to pay for the misdeeds of the island's outsize banks, will have lasting consequences for the economy, for depositor confidence beyond its borders and for the credibility of the currency union.
Read on -
Money fled Cyprus as president fumbled bailout
http://www.reuters.com/article/2013/03/25/eurozone-cyprus-muddle-idUSL5N0CG13920130325by Pedro da Costa via twitter 3/25/2013 7:05:38 PM -
The Dijsselbloem Principle http://reut.rs/WRAbSeby felix salmon via twitter 3/25/2013 7:14:09 PM -
Cyprus capital controls will be "very temporary"-president
NICOSIA, March 25 (Reuters) - Cyprus will introduce capital restrictions to prevent an outflow of money when its banks reopen this week but the measures will be "very temporary," President Nicos Nastasiades said on Monday.
"The central bank will implement capital controls on transactions," he said in a televised address to the nation. "I want to assure you that this will be a very temporary measure that will gradually be relaxed."
Anastasiades said the bailout deal reached overnight in frantic talks with the island's partners in the euro zone was "painful" but the best under the circumstances. -
Overseas lending, bank exposure to Cyprus around $100 billion: BIS, Moody's http://tinyurl.com/c72kd5sby Pedro da Costa via twitter 3/25/2013 7:47:15 PM
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Cyprus deal boosts Merkel at home, deepens resentment abroad http://tinyurl.com/c9hvq3lby Pedro da Costa via twitter 3/25/2013 7:47:25 PM
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ECB says allows emergency funding for Cyprus' banks http://tinyurl.com/d733chxby Pedro da Costa via twitter 3/25/2013 7:47:35 PM
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The power of suggestion: Long-term JGB yield hits near-decade low as BOJ's Kuroda hints at buying http://tinyurl.com/c2aeyyfby Pedro da Costa via twitter 3/26/2013 3:14:02 AM
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Brazil consumer confidence falls for sixth month to 3-year low http://tinyurl.com/ctccxouby Pedro da Costa via twitter 3/26/2013 3:20:18 AM
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Europe car sales chill spreads north: So far this year -10% in Germany; almost -30% in Netherlands; -14.8% in Sweden http://reut.rs/105yPCkby Pedro da Costa via twitter 3/26/2013 2:51:08 PM
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The Cyprus model: EU to push for losses on big savers at failed banks in new law, legislator says http://reut.rs/WTwBXuby Pedro da Costa via twitter 3/26/2013 2:54:05 PM
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Thanks but no thanks? Polish referendum could crush euro bid after PM gives way http://reut.rs/ZqGw6Zby Pedro da Costa via twitter 3/26/2013 3:07:05 PM
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Cyprus bail-in: Special case or new precedent? http://reut.rs/11FVXwdby Pedro da Costa via twitter 3/26/2013 3:28:39 PM
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2 Once the banks open, ECB cannot allow them to run out of cash. Kncok-on effect would be terrible.@FionaMullenCYby Hugo Dixon via twitter 3/26/2013 6:00:12 PM
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Point is you can afford to go without capital controls as long as ECB lets you as it's then on hook big time @FionaMullenCY @faisalislamby Hugo Dixon via twitter 3/26/2013 6:04:54 PM
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Gloom enveloping Portugal as austerity drags on http://tinyurl.com/cx77zpzby Pedro da Costa via twitter 3/26/2013 6:16:35 PM
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I'm still not giving up my campaign against Cyprus capital controls. Here's my (slightly dated) column from Sunday http://bit.ly/14mKnGNby Hugo Dixon via twitter 3/26/2013 6:18:51 PM
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Anybody estimated pro forma BOC balance sheet breaking down unencumbered assets, insured deposits? @alexapostolides @FionaMullenCYby Hugo Dixon via twitter 3/26/2013 6:50:43 PM
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1. ELA is not the ECB's liability. It's liability of central bank of Cyprus @alexapostolides @BarretK @FionaMullenCYby Hugo Dixon via twitter 3/26/2013 7:06:05 PM
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A majority of Germans doubt Chancellor Merkel's guarantee that their savings accounts are safe, according to new poll from Stern/RTL.by Pedro da Costa via twitter 3/26/2013 7:06:26 PM
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2 ELA is also secured against Laiki's assets with big haircuts. So better protected than deposits @alexapostolides @BarretK @FionaMullenCYby Hugo Dixon via twitter 3/26/2013 7:07:34 PM
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All together now: Hollande, Rajoy say Cyprus "unique"by Pedro da Costa via twitter 3/26/2013 7:13:59 PM
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France's Hollande says Cyprus bailout case "unique"
PARIS, March 26 (Reuters) - French President Francois Hollande said on Tuesday that guarantees on bank deposits was an "irrevocable" principle and the Cyprus case was exceptional.
"The guarantee of bank deposits must be an absolute and irrevocable principle," Hollande said at a news conference with Spanish Prime Minister Mariano Rajoy.
He added that the Cyprus was a "specific, unique and exceptional case."
Eurogroup head Jeroen Dijsselboem's asserted on Monday that the Cyprus bailout represented a new model for resolving banking crises in the bloc.
(Reporting By Elizabeth pineau and Julien Ponthus; writing by John Irish; editing by Ron Askew) -
S&P says it may downgrade Deutsche Bankby Pedro da Costa via twitter 3/26/2013 7:53:04 PM
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Number of people out of work in France rises for 22nd month in a row, nears record above 3 million http://reut.rs/Yd5LLaby Pedro da Costa via twitter 3/26/2013 7:58:10 PM
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Canada tightens financial oversight, tags 'too big to fail' banks that will face stricter leverage restrictions http://reut.rs/YdjaTwby Pedro da Costa via twitter 3/26/2013 8:09:01 PM
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Senate votes to “end 'too-big-to-fail' subsidies or funding advantages for Wall Street mega-banks," no one notices http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/25/who-wants-to-break-up-big-banks-the-senate-apparently/by Pedro da Costa via twitter 3/27/2013 1:26:42 AM
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Resolved to continue the process of creating an ever closer union among the peoples of Europe.-Maastricht Treaty 1992 http://www.eurotreaties.com/maastrichteu.pdfby Pedro da Costa via twitter 3/27/2013 3:06:36 AM
Putin says Russia will follow up fast after Ukraine call with Biden
MOSCOW Russian President Vladimir Putin said on Wednesday that Russia would send ideas to Washington within a week to follow up his talks with U.S. President Joe Biden on the Ukraine crisis.
