15/01/2013 14:16
President of the Republic, Demetris Christofias requested on Tuesday that the capital losses of the Cypriot banks from the haircut of the Greek bonds are covered directly from the support mechanism, stressing that money laundering is a distortion of reality.
Referring to the economic conditions, he said that he delivered a letter to the President of the European Commission asking for the recapitalization of the banks in Cyprus to be done directly from the support mechanism without debt charged to Cyprus.
Speaking in the context of a press conference in Strasbourg with the European Parliament President Martin Schulz, President Christofias said that there is misinformation regarding Cyprus’s ability to implement rules and EU directives on money laundering.
"Unfortunately, while we have taken tough measures that other countries haven’t, there is such rumour. It is not true. It is unfair”, he said.
On the question whether there is evidence for what Cyprus is doing for money laundering in relation to other countries, he said "they have challenged those who accuse Cyprus for money laundering to give information and no one has brought any information.
“We did everything humanly possible to end this rumour. It is no longer a rumour but a distortion”, he said.
Referring to the debt of Cyprus, the President reiterated that it is linked to the exposure of the Cypriot banks to Greece and the Greek debt haircut.
"I asked EU leaders, especially those who handle economic issues, if it wasn’t for the problem of the banks in Cyprus - which was basically created by the Greek debt haircut and cost us nearly €4,5 billion - would it be necessary to turn the support mechanism? And certainly they said no. But this is a reality and we must deal with it”, he noted.
He also asked for understanding and solidarity and "no curses."
“Talks with the troika dated back in July and there is a preliminary agreement for a memorandum. However, the troika believes that Cyprus needs €10 billion for the recapitalization of the banks while the government believes that the amount is lower. Because if it is €10 billion, the debt will be unsustainable and they will demand more for Cyprus”, Mr. Christofias said.
“We are, too, in front of a dispute ahead of the elections and during elections there are extreme positions. I am sorry that we have to deal with these issues in the eve of the elections because we could have shown more understanding”, he said.
Replying to a question, the President said that the amount of the debt or the recapitalization needs related to the haircut on Greek debt should be done directly from the support mechanism.
He said he delivered a letter to the President of the Commission requesting to do so, but it is still unknown how the troika will respond.
“But I believe that it is fair to make this part of the recapitalization directly without being charged on the debt of Cyprus", he continued.
The amount lost by the banks from the haircut on Greek government bonds reaches €4,5 billion.
The government, he said, took a series of measures in recent years to address the impacts of the crisis, aiming at growth and social cohesion.
But the problem of the banks has reversed everything. If the troika is ready, we are ready to sign the memorandum”.
If not, he said, we will continue talks on the needs and the new government will be forced to deal with the issue.
"And not because we want to transfer responsibility to the next government, but we must end up with the specific amounts and to agree with those who will give us a loan”, the President concluded.
Referring to the economic conditions, he said that he delivered a letter to the President of the European Commission asking for the recapitalization of the banks in Cyprus to be done directly from the support mechanism without debt charged to Cyprus.
Speaking in the context of a press conference in Strasbourg with the European Parliament President Martin Schulz, President Christofias said that there is misinformation regarding Cyprus’s ability to implement rules and EU directives on money laundering.
"Unfortunately, while we have taken tough measures that other countries haven’t, there is such rumour. It is not true. It is unfair”, he said.
On the question whether there is evidence for what Cyprus is doing for money laundering in relation to other countries, he said "they have challenged those who accuse Cyprus for money laundering to give information and no one has brought any information.
“We did everything humanly possible to end this rumour. It is no longer a rumour but a distortion”, he said.
Referring to the debt of Cyprus, the President reiterated that it is linked to the exposure of the Cypriot banks to Greece and the Greek debt haircut.
"I asked EU leaders, especially those who handle economic issues, if it wasn’t for the problem of the banks in Cyprus - which was basically created by the Greek debt haircut and cost us nearly €4,5 billion - would it be necessary to turn the support mechanism? And certainly they said no. But this is a reality and we must deal with it”, he noted.
He also asked for understanding and solidarity and "no curses."
“Talks with the troika dated back in July and there is a preliminary agreement for a memorandum. However, the troika believes that Cyprus needs €10 billion for the recapitalization of the banks while the government believes that the amount is lower. Because if it is €10 billion, the debt will be unsustainable and they will demand more for Cyprus”, Mr. Christofias said.
“We are, too, in front of a dispute ahead of the elections and during elections there are extreme positions. I am sorry that we have to deal with these issues in the eve of the elections because we could have shown more understanding”, he said.
Replying to a question, the President said that the amount of the debt or the recapitalization needs related to the haircut on Greek debt should be done directly from the support mechanism.
He said he delivered a letter to the President of the Commission requesting to do so, but it is still unknown how the troika will respond.
“But I believe that it is fair to make this part of the recapitalization directly without being charged on the debt of Cyprus", he continued.
The amount lost by the banks from the haircut on Greek government bonds reaches €4,5 billion.
The government, he said, took a series of measures in recent years to address the impacts of the crisis, aiming at growth and social cohesion.
But the problem of the banks has reversed everything. If the troika is ready, we are ready to sign the memorandum”.
If not, he said, we will continue talks on the needs and the new government will be forced to deal with the issue.
"And not because we want to transfer responsibility to the next government, but we must end up with the specific amounts and to agree with those who will give us a loan”, the President concluded.
Related Articles
