08/03/2013 06:11
The Cypriot government resists to the new claims raised by the heads of the troika delegation, preparing alternative scenarios for dealing with the creditors in case they insist on radical solutions.
Sources involved in the negotiations said that creditors are seeking, among others, an increase in corporate tax to 12.5%, an increase in the taxation of interests, fee on financial transactions and nationalization of the pension funds of the semi-governmental organizations.
The Cypriot negotiating side yesterday made clear that the integrity of deposits is a red line and no Cypriot government will accept such an arrangement.
The government also resisted to the demands for an increase in corporate tax and a duty on financial transactions.
Intense discussion with the lenders were made for the proposal submitted by the technocrats of the International Monetary Fund on the nationalization of the pension funds, with the Cypriot negotiating team putting a "veto”.
With regard to the controversial issue of money laundering, the troika technocrats seem to have been convinced and are satisfied with the decision taken by the Eurogroup.
The attitude of the IMF delegation, the members of which have not clarified their position in relation to the haircut or not of deposits – the ECB and the European Commission have – has been questioned.
The executives of international organizations yesterday came face to face with the President’s opposition to the proposal for an increase in the corporate tax and a haircut in deposits.
Last night, the Presidential sources did not hide their concerns on the new terms set by the lenders, which if they are accepted, they will further aggravate the problems of the banking system.
The pressures of the heads of the troika intensify the political efforts to avoid onerous terms in the Memorandum.
President Anastasiades will on Saturday have a telephone conversation with German Chancellor Angela Merkel and next week he will fly to Greece on his first official visit to discuss extensively with Prime Minister Antonis Samaras the economic problems of the two countries, with special emphasis on the banking system.
It has been leaked by the Presidential Palace that the government has prepared a plan b in the event that the signing of the loan agreement delays for unforeseen reasons.
The President noted yesterday competent sources, has already hotline both with Russia and with other western countries.
Yesterday, Mr. Anastasiades had a telephone conversation with the Israeli Prime Minister, Ben. Netanyahu.
Sources involved in the negotiations said that creditors are seeking, among others, an increase in corporate tax to 12.5%, an increase in the taxation of interests, fee on financial transactions and nationalization of the pension funds of the semi-governmental organizations.
The Cypriot negotiating side yesterday made clear that the integrity of deposits is a red line and no Cypriot government will accept such an arrangement.
The government also resisted to the demands for an increase in corporate tax and a duty on financial transactions.
Intense discussion with the lenders were made for the proposal submitted by the technocrats of the International Monetary Fund on the nationalization of the pension funds, with the Cypriot negotiating team putting a "veto”.
With regard to the controversial issue of money laundering, the troika technocrats seem to have been convinced and are satisfied with the decision taken by the Eurogroup.
The attitude of the IMF delegation, the members of which have not clarified their position in relation to the haircut or not of deposits – the ECB and the European Commission have – has been questioned.
The executives of international organizations yesterday came face to face with the President’s opposition to the proposal for an increase in the corporate tax and a haircut in deposits.
Last night, the Presidential sources did not hide their concerns on the new terms set by the lenders, which if they are accepted, they will further aggravate the problems of the banking system.
The pressures of the heads of the troika intensify the political efforts to avoid onerous terms in the Memorandum.
President Anastasiades will on Saturday have a telephone conversation with German Chancellor Angela Merkel and next week he will fly to Greece on his first official visit to discuss extensively with Prime Minister Antonis Samaras the economic problems of the two countries, with special emphasis on the banking system.
It has been leaked by the Presidential Palace that the government has prepared a plan b in the event that the signing of the loan agreement delays for unforeseen reasons.
The President noted yesterday competent sources, has already hotline both with Russia and with other western countries.
Yesterday, Mr. Anastasiades had a telephone conversation with the Israeli Prime Minister, Ben. Netanyahu.
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