Russia Kills
Plan B; Emergency Meeting of Parliament Tonight to Reconsider Levy
anamericanincyprus
20th March 2012
Following the
Cypriot parliament’s rejection of the levy, Cyprus considered Plan B, a new
plan to raise the 5.8 billion euros beyond what Troika is willing to lend
Cyprus. The details of Plan B have not been made public, however it is widely
believed that it was dependent on Russia providing some financial assistance
for at least a portion of the 5.8 billion that is beyond what Troika believes
is a loan Cyprus could sustain. Cypriot Finance Minister Michalis Sarris is in
Moscow and has met with his Russian counterpart. Sarris is quoted as having
stated "We will be here until some kind of agreement is reached," (1)
It has been hoped that Russia will agree to ease the terms of its current loan
to Cyprus in addition to further financial assistance.
Tonight the
Cypriot government has announced that Russia has stated that it will not provide
further financial assistance. It is not clear yet whether Russia will ease the
terms of the current loan. The large number of Russian investors in Cyprus have long been a point of contention between the two governments. Putin has
repeatedly requested that Cyprus provide the names of its Russian investors.
Under Cyprus law the ultimate beneficial owners of companies are confidential,
thus Cyprus has declined to name the investors. Putin wants Russian money to
return to Russia.
Anastasiades
called an emergency parliament meeting tonight wherein Cyprus is considering
its options and now taking a second look at a bank levy, so called Plan A-. A
mass exodus of Russian funds out of Cyprus is expected. Putin has stated that
this is a lesson to Cyprus. It seems that Troika and Russia both want Cyprus to
learn lessons.
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