Cyprus running out of cash as it waits for rescue
9 April 2013 1:59am
CYPRUS will struggle to pay its civil servants and pensions this month due to a budget shortfall of at least €75m (£63.9m), the country’s accountant general said yesterday.
Rea Georgiou told the country’s parliamentary finance committee that the government was racing to plug to funding gap until its bailout cash comes through next month.
Cyprus last month agreed a €10bn (£8.4bn) bailout deal from the European Union and International Monetary Fund.
New finance minister Haris Georgiades said at the same committee that Cyprus has no other choice but to stick to the terms of the deal, including a haircut on depositors with more than €100,000 to help recapitalise the country’s banks.
“I would like to make this clear: There is no Plan B... An exit from the euro, and I underline this, would equal a much bigger haircut not only on big depositors but on the entire economy,” he said. “The living standards of every citizen would go back decades.”
The Central Bank of Cyprus on Friday extended limits on cash movements for a further week, as account holders with more than €100,000 await the first levy on their savings, which could come within days, according to reports.
A probe into the country’s stricken banking system will be expanded to include Cyprus Popular Bank, which was nationalised last year due to its exposure to Greece, the central bank, led by Panicos Demetriades, said yesterday.
In other news
Young people aged 16 and 17 years old should be given the chance to vote in a EU referendum, according to the [Read more]
The Bank of England is carrying out a confidential investigation into what would happen if the UK left the European [Read more]
This year's Eurovision Song Contest will feature an addition to the normal line up – for the first time ever, [Read more]
Tonight is the 60th Eurovision Song Contest, and once again we're in for an evening of cheesy music and crazy [Read more]
The Eurovision Song Contest is getting more and more expensive, despite Europe's decline into austerity. [Read more]
There were delays of up to 30 minutes to trains in and out of Kings Cross Station, after the station was re-opened [Read more]
When a 20-year-old footballer publicly declares he wants to leave a club and his agent hurls insults at one of [Read more]
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]
The news that card and electronic transactions have overtaken cash as the UK’s preferred method of payment is [Read more]
Despite the crippling effect of election uncertainty, offers received in April were up 15 per cent on last year [Read more]
Former secretary of state for communities and local government Eric Pickles is to be knighted, 10 Downing Street [Read more]
Network Rail engineers have destroyed the Abbey Wood station as part of the Crossrail development that is expected [Read more]
The Championship looks set to once again be named the fourth most-watched league in Europe, following a seven [Read more]
The Costa Coffee owner said Brittain was "the standout candidate from a very strong field". [Read more]