Crisis: Troika, Cyprus may sign a Memorandum by end of July
Finance Director of the Ministry of Finance Andreas Trokkos said Monday that a Troika delegation, already on the island, is here on a fact-finding mission to discuss the terms of a bailout.
"The mission is clearly exploratory at this stage. At the technocratic level, we attribute special importance to giving a complete picture to the delegation members in all areas, whether it concerns the financial sector or more widely budgetary issues and macroeconomics", he said. This, he noted, would be the best way to develop a common approach with the Troika, on how to address the challenges facing the island's economy. He explained that the Troika wishes to evaluate the situation of the banking system in Cyprus, which is highly exposed to Greece, either by holding large amounts of Greek government bonds or a large loan portfolio in Greece. On June 25 Cyprus became the fifth eurozone member-state to request financial aid from EFSF/ESM, after suffering big loses as a result of its large exposure to the Greek economy. Cypriot banks have been severely hit by a 76% write down of their Greek bond holdings as a result of the Greek sovereign debt haircut and have announced capital raising plans in March 2012 and November 2011 respectively, with a liability management exercise and a rights issue as their main components.
The government has decided to act as an underwriter of a 1.8 billion euro capital issue by CPB.
Tuesday, 3 July 2012
(ANSAmed) - NICOSIA, JULY 3 - A senior official with the Finance Ministry has not ruled out the possibility of Cyprus signing a Memorandum of Understanding by the end of the month with Troika (EU Commission, European Central Bank and International Monetary Fund) as Famagusta Gazette reports today.
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