Cyprus starts talks with EU, IMF officials on terms and size of bailout for its troubled banks

[dipsydoodle]

Source: Washington Post

NICOSIA, Cyprus — Cyprus began talks Tuesday with the European Union and the International Monetary Fund to gauge how much bailout money it may need to prop up banks weighed down by their huge exposure to Greek debt.

Finance Minister Vassos Shiarly said officials from the so-called ‘troika’ — the European Commission, the European Central Bank, and the IMF — will meet with Cyprus government and central bank authorities, among others, during the course of the week to gather information.

Read more: http://www.washingtonpost.com/business/markets/cyprus-starts-talks-with-eu-imf-officials-on-terms-and-size-of-bailout-for-its-troubled-banks/2012/07/03/gJQAzaiJKW_story.html

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From 2 weeks ago :

For Rescue Line, Cyprus Prefers a Russian Loan.

LIMASSOL, Cyprus — Caviar and pelmeni line the supermarket shelves in this picturesque seaside Cypriot city, so pervasively Russian that it has been dubbed “Limassolgrad.”

Now many on this tiny island nation, whose banks and government are facing economic insolvency, are hoping for financial salvation from Russia rather than Germany and the European Union.

“I would much rather be saved by Moscow,” said Elena Tsolia, 30, an attendant at the department store Debenhams, where Russian shoppers snap up bottles of Dior and Chanel perfume. “We are a small island and we don’t want to be owned by Germany.”

The slim victory by a pro-bailout party in Greek elections on Sunday has helped allay some concerns that a potential Greek exit from the euro zone would sink the Cypriot economy, which is heavily exposed to Greek banks. But as a backlash against austerity spreads across Europe, Cypriot officials say they are determined to avoid the kind of severe budget cuts that unhinged the Greek economy.

http://www.nytimes.com/2012/06/19/world/europe/cyprus-counts-on-its-close-ties-to-russia.html?pagewanted=all

[ProgressiveProfessor]

1. Have to wonder how much the illegal Turkish occupation has impacted this

[dipsydoodle]

2. Not so much in this connection

Occupying jobs maybe in the Greek sector of the island but that's another issue. Aside from that those jobs are fast disappearing - most were in the building trade which is now dormant.

The issue here is Cypriot banks having bought Greek bonds - they've been turned over big same as everybody else but are in a lesser position to absorb it. The historic close relationship between Cyprus and Greece has fallen out bed.

I knew about the Russian issue from a personal source. The offer of the necessary loan from Russia is already in place - just needs taking up. As such Cyprus won't take any stick from the EU. Its "give us the money" or we accept the Russian offer - please yourselves.

[dipsydoodle]

3. Cyprus: EU bailout, Russian loan compatible

NICOSIA, Cyprus -- Cyprus' president defended his government's decision to seek financial aid from the island nation's eurozone partners while at the same time asking for a loan from Russia.

Dimitris Christofias said Thursday that he sees nothing wrong with simultaneously pursuing a loan from Russia that may come with better terms than a European Union bailout.

But Christofias stressed that "there's no issue" of Cyprus refusing bailout funds loan if it clinches a Russian loan.

Read more here: http://www.sacbee.com/2012/07/05/4610791/cyprus-eu-bailout-russian-loan.html#storylink=cpy