End Times and Current Events

General Category => Europe => Topic started by: Psalm 51:17 on June 26, 2012, 12:02:52 pm

Title: Cyprus 5th EU country to request bailout
Post by: Psalm 51:17 on June 26, 2012, 12:02:52 pm

Euro zone Big Four confer after fifth state seeks aid

(Reuters) - Finance chiefs of the euro zone's four biggest economies will hold last-minute talks in Paris on Tuesday evening to try to narrow differences on the currency area's future after Cyprus became the fifth country to request a bailout.

Ministers from Germany, France, Italy and Spain will discuss how to manage the crisis in the short term and proposals for closer long-term fiscal and banking integration to prepare for a European Union summit starting on Thursday.

Financial markets are on edge and international pressure for decisive action is rising but the summit, the 20th since the bloc's debt problems began in early 2010, is not expected to produce a lasting solution to the crisis.

European Commission President Jose Manuel Barroso underlined just how much was at stake.

"It is not only economic integration, it is also the overall economic confidence in the euro area, and indeed, our commitment to the European project," he said in a speech in Brussels. "This is why we need to be bold and define the way forward."

A report prepared by the EU's top four officials suggests the euro zone could create a treasury for the single currency and jointly issue euro bonds in the medium term as the final stage of a fiscal union.


Title: Re: Cyprus 5th EU country to request bailout
Post by: Psalm 51:17 on August 02, 2012, 12:16:29 pm
S&P cuts Cyprus rating to BB on bailout concerns
2 August 2012, by Sara Sjolin - London (MarketWatch)

Standard & Poor's Ratings Services on Thursday cut its long-term rating on Cyprus to BB from BB+ and placed the rating on a negative watch on fears the country will ask for financial aid.

The ratings agency said it expects the country to negotiate a bailout package of 11 billion ($13.5 billion) to recapitalize its banking system.

"However, even with official assistance - which we view as vital if Cyprus is to avoid default - we believe the government will remain in a weak fiscal position due to a banking system that has been unable to cope without government support as a result of its exposure to Greek customers," S&P said in a press release.

S&P estimated that Cyprus net government debt burden would rise by nearly 12% of GDP on average in 2012 and 2013, peaking at over 105% of GDP in 2013.

"We estimate that Cyprus needs the equivalent of just over 60% of its GDP to recapitalize its banks, absorb further bank losses, and meet 2012-2014 borrowing requirements," the ratings agency said.

Title: Re: Cyprus 5th EU country to request bailout
Post by: Psalm 51:17 on November 23, 2012, 09:47:59 pm


Cyprus close to a bailout deal with EU/IMF

NICOSIA (Reuters) - Cyprus is close to agreeing a bailout package with the European Union and IMF, President Demetris Christofias said on Thursday after the latest round of talks with the international lenders.

Two EU sources said the agreement was nearly done but would be completed only on Friday, when inspectors from the European Commission, European Central Bank and International Monetary Fund - together known as the troika - are likely to give their approval.

The Commission, asked about reports that a deal had been agreed, said it would only issue a statement on Cyprus on Friday.

"We will communicate on the outcome of the mission to Cyprus tomorrow," Commission spokesman for economic and monetary affairs Simon O'Connor said.