• 2013-03-24 22:58

    SINGAPORE - The following is the International Monetary fund Statement on the agreement reached early Monday to restructure the banking sector in Cyprus.

    Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today after discussions at the Eurogroup meeting on Cyprus:

    "The agreement reached today on Cyprus provides a comprehensive and credible plan to deal with the current economic challenges in the country. The plan focuses on dealing with the two problem banks and fully protecting insured deposits in all banks. It addresses upfront the core problem of the banking system through a clear strategy that ensures debt sustainability and does not excessively burden the Cypriot taxpayer.

  • 2013-03-24 22:13

    BRUSSELS (MNI) - Following is the full text of Eurogroup Statement on Cyprus:

    The Eurogroup has reached an agreement with the Cypriot authorities on the key elements necessary for a future macroeconomic adjustment programme. This agreement is supported by all euro area Member States as well as the three institutions. The Eurogroup fully supports the Cypriot people in these difficult circumstances.

    The programme will address the exceptional challenges that Cyprus is facing and restore the viability of the financial sector, with the view of restoring sustainable growth and sound public finances over the coming years.

    The Eurogroup welcomes the plans for restructuring the financial sector as specified in the annex.

  • 2013-03-24 20:45

    -Talks Continue On Details To Plan Outline

    BRUSSELS (MNI) - Wealthy depositors at Cyprus Popular Bank will lose a significant portion of their savings under a bailout package being worked out early Monday between Nicosia, Eurozone officials and the International Monetary Fund.

    Bondholders who lent to the country's second largest bank will also see their investments wiped out under the deal, according to an European Union official.

    No depositors with less than E100,000 will be affected, said the EU official briefed on the deal.

    Cyprus Popular Bank, will be wound down and split into a good bank and a bad bank.

  • 2013-03-24 20:01

    LONDON (MNI) - UK manufacturing pay deals are holding steady, according to the latest survey from the engineering federation.

    The EEF/Jam survey survey finds the average manufacturing pay deal was 2.3% in the three months through February, unchanged from the three months through January.

  • 2013-03-24 19:25

    BRUSSELS (MNI) - Eurozone finance ministers are taking a back seat in talks over a last-ditch bailout package for Cyprus as the currency bloc's senior leaders and IMF managing director Christine Lagarde try to hammer out a deal over a working dinner Sunday that could go on all night.

    Cypriot Finance Minister Michalis Sarris is participating in the dinner, but the Eurozone's other 16 finance ministers including Germany's Wolfgang Schaeuble and France's Pierre Moscovici are on the sidelines for now.

    The Eurozone's finance ministers struck a deal to bailout Cyprus last week only to see it collapse within days when the Cypriot Parliament rejected it.

    At the dinnner table are Cypriot President Nicos Anastasiades and his finance minister, the Presidents of

  • 2013-03-24 16:30

    - Bank Of France Has Means To Wind Down Banks Without Hurting Savers

    PARIS (MNI) - A crisis of kind that has hit Cyprus could never happen in a country where banks are under close surveillance, which argues for the rapid launch of harmonized supervision in Europe, ECB Governing Council member Christian Noyer said in an interview published Sunday.

    "For years Cypriot banks have been taking risks that are prohibited in France," the governor of the Bank of France told the weekly Le Journal du Dimanche. "What is happening in Cyprus argues for the rapid implementation of a European banking supervisor under the aegis of the ECB."

    "The Cypriot banking system is eight times the size of the country's GDP!" he exclaimed.

  • 2013-03-24 16:22

    BRUSSELS (MNI) - European and International Monetary Fund officials are gathered here late Sunday for emergency talks to scrape together a last-minute bailout package for Cyprus, the island economy whose troubled banking sector has thrown Europe's 17-country monetary union back into crisis mode.

    Summing up the nature of the crisis, Luxembourg Finance Minister Luc Frieden said the fate of the Eurozone was at stake, not just Cyprus.

  • 2013-03-24 06:22

    NICOSIA (MNI) - Cypriot President Nikos Anastasiades is on his way to Brussels to meet with officials and negotiate a bail-out deal, a government spokesman said Sunday. Negotiations are difficult but must result in a positive outcome to avoid the country's default, he added.

    The spokesman, Christos Stylianides, said in a statement that while the president is in Brussels with a negotiating team, the leaders of Cyprus' political parties will gather at the presidential palace in the capital and be briefed constantly by Anastasiades in order to reach a common decision.

    "We are at a delicate point.

  • 2013-03-23 09:14

    -- Troika Maintaining Tough Stance on Deposit Haircut Demand - EU Source
    -- Eurozone Hard Core Members Want Generous Deposit Levy - EU source

    NICOSIA (MNI) - Negotiations between the Cypriot government and representatives of the Troika -- the European Commission, the European Central Bank and the International Monetary Fund -- are on-going, but "real progress has been made," Cyprus Finance Minister Michalis Sarris said Saturday.

    The minister told journalists that "two, three issues are still open" and that he hoped "there would be no surprises". Deliberations between working teams continue and a new meeting of top officials is set for Saturday afternoon.

  • 2013-03-22 18:56

    NICOSIA (MNI) - The Cypriot parliament unanimously approved Friday night the Solidarity Fund bill as well as legislation to tighten control over capital movements, but barely passed the controversial bill on the reconstruction of the banking sector.

    The bank overhaul bill includes the resolution of all current and future insolvent banks and was considered by opposition parties as sloppy and incomplete. But the opposition parties chose to abstain from the vote rather than oppose the bill so that the legislation would pass, given that the expectation that the European Central bank would have stopped liquidity injections and let ailing banks default Tuesday morning.