Cyprus denies levy rumors amid panic
Source: AFP |
April 6, 2013, Saturday
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Print Edition
Print Edition
PANICKED Cypriots queued outside banks yesterday on rumors that a new levy would be imposed on deposits as part of a bailout, but the authorities moved quickly to assure them this was not the case.
Cyprus wrapped up talks this week paving the way for the 10-billion-euro (US$13 billion) bailout from European Union-led lenders, but fears swirled that it was still well short of the 5.8 billion euros to fund its end of the deal.
As the speculation spread yesterday morning, customers formed long queues outside some of the larger branches of the Co-op bank, prompting the government to issue a denial of the reports. "Such an issue was never tabled or discussed, therefore we categorically state that no such issue exists, not even as an intention," the finance ministry said.
The central bank also denied reports of any plans to introduce a "general" haircut of deposits to pay for the conversion of uninsured deposits above 100,000 euros into shares in the island's biggest lender, the Bank of Cyprus.
"We refute this because such an action is not provided for in the policy decisions taken by the Eurogroup," it said.
Cyprus wrapped up talks this week paving the way for the 10-billion-euro (US$13 billion) bailout from European Union-led lenders, but fears swirled that it was still well short of the 5.8 billion euros to fund its end of the deal.
As the speculation spread yesterday morning, customers formed long queues outside some of the larger branches of the Co-op bank, prompting the government to issue a denial of the reports. "Such an issue was never tabled or discussed, therefore we categorically state that no such issue exists, not even as an intention," the finance ministry said.
The central bank also denied reports of any plans to introduce a "general" haircut of deposits to pay for the conversion of uninsured deposits above 100,000 euros into shares in the island's biggest lender, the Bank of Cyprus.
"We refute this because such an action is not provided for in the policy decisions taken by the Eurogroup," it said.
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