Thursday, March 21, 2013

MPs Arrive to Vote on Future Cyprus' Future; Russia Not out of the Picture Yet

21st March 2013, 7:25 pm

Parliament members arrived moments ago to vote on measures to raise 5.8 billion euros amidst protests and chaos. Earlier today it was reported that party leaders had agreed unanimously on a new plan, yet this evening a point of contention has surfaced regarding restructuring of the banks, specifically with respect to closing of Cyprus Popular Bank (Laiki). It seems that balances under 100,000 euros in Laiki would be transferred to Bank of Cyprus, and it is not clear how balances in excess of 100,000 in Laiki would be treated. Laiki employees are among the protestors and it is said that the opposition government is in disagreement with the bank restructuring.

Cyprus finance minister remains in Russia, presumably negotiating ease of terms of current loan. Some sources report that a new loan to Cyprus to assist with raising the 5.8 billion has not been dismissed. It is assumed that Russia is interested in natural gas and oil reserves recently discovered in Cyprus' EEZ.

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