The European Central Bank will provide liquidity to banks in Cyprus when they reopen, ECB Governing Council member Ewald Nowotny was quoted as saying on Tuesday. "No decisions have been taken so far because we don't know the final results of the discussions in Cyprus, but given the present legal background, the ECB will be
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Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing euro zone efforts to rescue the latest casualty of the currency area's debt crisis into disarray. The vote by the small state's legislature was a stunning setback for the 17-nation euro zone, after lawmakers
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Fitch Ratings announced Tuesday it has placed the ratings of Bank of Cyprus (BOC), Cyprus Popular Bank (CPB) and Hellenic Bank (HB) on Rating Watch Negative to reflect downside rating risks arising from the deliberations to impose losses onto the banks’ depositors. The Euro area Finance Ministers decided on Saturday that a bailout for Cyprus
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It is important that the situation in Cyprus is resolved in a responsible and fair way that ensures financial stability, the US Treasury Department has said. In a written statement the US Treasury notes that it “is monitoring the situation in Cyprus closely, and Secretary Lew has been speaking with his European counterparts”. The statement
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Trading on the Cyprus Stock Exchange (CSE) has been suspended to safeguard the interest of investors and until such time as banks remain closed due to negotiations of a 10 bln euro bail-out and 5.8 bln euro bail-in programme to be taxed from savings in order to rescue the Cyprus economy. The CSE announced that
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Asian shares steadied as investors awaited a parliamentary vote in Cyprus on a bailout plan crucial to avert bankruptcy, but potential political instability in India emerged as a fresh worry. A 1.3% tumble in Indian shares dragged down the MSCI's broadest index of Asia-Pacific shares outside Japan, erasing earlier gains to hold steady. The fall
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After several delays, the parliament in Cyprus is unlikely to pass a bill taxing deposits which has prompted turmoil in its banking system, falling short on a condition for an international bailout, government spokesman Christos Stylianides said on Tuesday. Banks will remain closed on Tuesday and probably until a parliamentary vote, to prevent a bank-run
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The Eurogroup seems to have had a change of heart and is willing to give Cyprus more flexibility over a bank levy which is part of its strict bailout conditions, sources said on Monday after a teleconference of euro zone finance ministers. The decision was prompted by acute reactions in world markets that punished the
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. By Fiona Mullen, Director Sapienta Economics As some of you might have heard me say on air this week, I have a nasty feeling that the eurozone elites took an unconscious decision in the early hours of Saturday morning to cut the umbilical cord with southern and peripheral Europe and thereby lay the ground
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Global stock markets edged lower on Monday as concerns over European sovereign debt returned to the forefront after the euro zone's decision on partially funding a bailout of Cyprus by taxing bank deposits. The declines gave U.S. equities investors the opportunity to lock in profits after an extended rally last week, but losses were limited
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