Cyprus & World News


30 April, 2014

 * Cyprus MPs undecided whether to release list with capital outflows *

The parliamentary ethics committee meets again on Wednesday to decide whether to release the list of individual names and companies who exported funds when banks were shut in March 2013 after the Eurogroup of Eurozone finance ministers imposed a haircut on deposits and tight exchange controls.
All local banks remained closed for two weeks between March 16 and 28 as the authorities worked out a deal with the Eurogroup on the terms of the EUR 10 bln bailout, which saw in a bail-in of all unsecured deposits of over 100,000 euros at Bank of Cyprus and depositors at Laiki losing their fortunes resulting in its closure.
MPs have been debating what caused the collapse of the island’s banks and have collected a mass of data, including various lists on capital outflows during critical “lock down” periods.
The committee concluded its discussion on the final draft of its report in the presence of Central Bank Governor Chrystalla Chrystalla Georghadji, who seems more forthcoming to cooperate than her predecessor.
Georghadji told MPs that she intends to do random checks including on lists of deposit outflows for the periods of March 1 to 16, 2013, from March 16 to 27, 2013 and an earlier period of July 2012 when the state had rescued Cyprus Popular Bank (Laiki) with a 1.8 bln euro capital injection and had nationalised the island’s second biggest lender.
She explained that the checks will be conducted for deposit outflows of over 100,000 euros, noting that the aim is to check whether the outflows which took place when banks were closed had been approved by a committee set up for that reason.
Ethics Committee chairman Demetris Sylouris said the report has now been finalised, adding that on Wednesday the committee will meet again to decide on whether to publicise the lists of those who transferred money abroad.
The report will be discussed in the House plenary session on May 6.