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Thread: Leaked report states that Cyprus will need an additional 6 billion for bailout

  1. #1
    Politics.ie Member Sync's Avatar
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    Default Leaked report states that Cyprus will need an additional 6 billion for bailout

    Oh dear. I'm starting a new thread on this because (if true) it means they need to tear everything up and start again.

    Cyprus forced to find extra

    Crisis-hit Cyprus will be forced to find an extra €6bn (5.1bn) to contribute to its own bailout under leaked updated plans for the rescue.

    In total, the bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.

    Cyprus's politicians had already faced intense domestic political pressure for agreeing to impose hefty losses on savers at two struggling banks in order to fulfil its eurozone partners' demands of contributing €7bn
    The report is here: http://blogs.r.ftdata.co.uk/brussels...09042013-1.pdf


    The key from the summary is:
    The European Commission, in liaison with the ECB, estimates that Cyprus's gross financing needs
    amount to about [EUR 23bn] over the three-year programme horizon, i.e. 2Q2013-1Q2016. This
    includes needs for the recapitalisation of the banking sector, the redemption of maturing medium- and
    long-term debt including loans, and fiscal needs.

    Thanks to burden-sharing measures adopted by the Cypriot authorities prior to signing the MoU in
    particular as regards the recapitalisation of the banking sector, net financing needs are expected to
    amount to a maximum of EUR 10bn
    This...is big. Cyprus can't come up with this money. They need this money. So where's it going to come from? Do they run to Russia? Hit up the depositers still further? Pull out of the Euro?

    The entire thing has been shambolic. Europe running about vacillating on what to do, no one having the authority to put their foot down. Cyprus staffed by incompetants who can't count. This is the smallest possible country to fall over, but the EU can't even get this right, or look like the likely to get it right. It's a mess.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Politics.ie Member gerhard dengler's Avatar
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    The leaked document if anyone wishes to read it.

    http://blogs.r.ftdata.co.uk/brussels...-April2013.pdf
    Politics.ie moderators should moderate instead.
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    Politics.ie Member Dan_Murphy's Avatar
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    Where have the extra billions in costs come from?

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    Politics.ie Member Shpake's Avatar
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    Ah sure it's only money.
    "Well, OK. Fine. As long as it comes with a steady paycheck, I'd believe whatever they wanted me to believe, as the Guy in Ghostbusters said."

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    just wondering, anyone here know if there has been a run on remaining deposits in the main banks there yet?
    I haven't heard any reports about it, but maybe the controls are still in place?

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    May dad, Bless him, had a lesson for me one day . he said ....Dont ask for the loan of a fiver if you need a tenner. You'll piss people off with that.
    Man of few words , my dad.

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    Moderator NYCKY's Avatar
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    Ahh, those Cypriots! Sure, they all partied.

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    Politics.ie Member Aindriu's Avatar
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    Thanks, Sync.

    If it is true this is going to cause major ructions across the EU.

    Could it be the straw that breaks the camels back?
    If you continue to elect idiots in elections, don't be surprised when the result is an idiotic government.

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    Politics.ie Member libertarian-right's Avatar
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    Time to bleed those domestic savings dry!

    They miscalculated by 35%. This is a big mess.

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    Politics.ie Member cyberianpan's Avatar
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    Cyprus is tiny and shoudn't be too hard to figure out, as is it is well known that the Troika domestic contraction/growth figures for Cyprus way underestimate the downside. I'm not sure why the Troika aren't doing things properly, and at this stage the IMF Is tarnished.

    As well as lender of last resort, IMF is more imporatnly meant to be "technical assistance of last resort". By this I mean neutral, apolitical wonks who get things right. The IMFs credibility in this regard is blown and there is no agency above/beyond them. This might be alright if just Cyprus was the problem, but way larger countries are on shaky ground.

    Until there's radical reform of the IMF (Lagarde & Blanchard booted etc), the Eurozone will continue to muddle on. The only other option is that there's benevolent extra-terrestial life, and that an inter-planetary monetary fund comes to our rescue.

    cYp
    "Yawn , am I alive yet ?"

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