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Purveyor

(29,876 posts)
Fri Mar 22, 2013, 11:47 AM Mar 2013

Russia Rejects Cyprus Financial Rescue Bid as Deadline Looms

Source: Bloomberg

By Olga Tanas and Ilya Arkhipov - Mar 22, 2013
Russia spurned Cyprus’s offers of assets for a bailout as the island nation’s lawmakers begin debate on legislation to avert a financial collapse.

“I think we aren’t able to get the support that we wanted to get,” Cypriot Finance Minister Michael Sarris said in an interview after checking out of the Lotte Hotel in Moscow. “But we must go back home because things are getting serious.”

Cypriot lawmakers begin debating legislation today to prevent a financial meltdown as the European Central Bank threatens to cut off a lifeline for the country’s banks in three days unless a bailout agreement with the European Union is reached. Russian companies and individuals may have about $31 billion of deposits in Cyprus, which in turn is the biggest source of foreign direct investment in Russia.

“The only thing that Cyprus could hope for is Gazprom buying some reserves from them,” Vladimir Kolychev, head of research at Societe Generale SA’s Rosbank (ROSB) unit in Moscow, said by phone. “It’s not clear what these gas reserves are worth, and apparently Gazprom wasn’t particularly interested.”

Read more: http://www.bloomberg.com/news/2013-03-22/cyprus-s-sarris-to-leave-moscow-without-russian-financial-help.html

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Russia Rejects Cyprus Financial Rescue Bid as Deadline Looms (Original Post) Purveyor Mar 2013 OP
Cyprus's proposal should now come within hours. dipsydoodle Mar 2013 #1
Solidarity fund and capital controls both approved dipsydoodle Mar 2013 #2

dipsydoodle

(42,239 posts)
1. Cyprus's proposal should now come within hours.
Fri Mar 22, 2013, 02:23 PM
Mar 2013

The IMF/ECB/EU aka The Troika will then consider over the weekend whether or not Cyprus's intentions can be put in place in time for Monday when the liquidity program shuts down. The solvency of their banks is thus dependent on what Cyprus does : not the €10 million bailout which would follow all being good. If on Monday the banks were deemed to be insolvent it would become illegal for them to open.

Russia has said it will now wait for the outcome of the Troika meeting.

In the meanwhile here's some interlude music from the Grimethorpe Colliery Band.



ps - as I write it looks like they will tax all deposits over €100,000 at 15%.

dipsydoodle

(42,239 posts)
2. Solidarity fund and capital controls both approved
Fri Mar 22, 2013, 05:29 PM
Mar 2013

7 more measures to go all of which are expected to be approved.

Details of capital controls here : http://www.democraticunderground.com/101658715

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