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Press: Developers won troika

23/07/2013 08:09
The major issue in today’s financial press is the proposal promoted for the separation of Bank of Cyprus in commercial and real estate and the reactions.

The “Economy” inset of newspaper “Phileleftheros” refers to the postponement of the separation of Bank of Cyprus in commercial and real estate bank. According to the report, the groundwork for the real estate bank will be done by the transitional Board but the decision was left to the new shareholders of the bank.

Board Chairman, S. Michaelides, revealed that the troika has given the green light and the experts of the CB and Bank of Cyprus and the Finance Ministry are working towards preparing a framework for the operation of the real estate bank.

It is noted that the establishment of a real estate bank has aroused strong feelings and has been condemned by all parties.

Elsewhere the newspaper reports that the troika delegation ascertained that we are within the fiscal targets but stronger effort is needed in the structural changes.

Other headlines:

- Averof: There is no more catastrophic scenario

- ETYK hopes to a solution by the troika

- CPB depositors seek retribution

- Public debt increased by €2bn

The newspaper “Politis” refers to the reactions for the establishment of a real estate bank. According to the report, those reactions have to do with the large land developments. Most of them owe more than €2 billion to the bank.

The “Economy” inset of the newspaper refers to the EU note released to the Presidential just before the February elections. The note referred to the 3 of the 4 proposed solutions for the rescue of the banks. The confidential document was reportedly known to the presidential palace but it was not given to the new government.

Other headlines:

- Push expenditure down, do not increase taxes – European employers

- Focus on SSF – GHP

- CSE up 0.10%

- ASE enjoyed gains

The “Economy” inset of newspaper “Simerini” refers to the separation of Bank of Cyprus in commercial and real estate bank. According to the report, the consolidation authority and the transitional Board of the bank try to adopt the “bad bank” model to the standards of Ireland, Spain and Greece. The “bad bank” will have the form of a management company, which will undertake all problematic loans of the big borrowers.

The newspaper also reports that DISY President, Averof Neophytou expressed his opposition to the plan for the separation of Bank of Cyprus.

Other headlines:

- Within fiscal targets

- ETYK and troika met

- CTO wants feasibility study first for the selection of a suitable location

- Positive step towards promoting RES

The newspaper “Haravgi” highlights that Cyprus will have a dramatic course similar to that of the other countries that reached a memorandum agreement with the troika. According to troika’s estimates, recession will reach 8.7% this year, however, the estimates by foreign firms push the rate to 14% for this year and 6% more for 2014.

The “Economy” inset of the newspaper refers to the meeting of ETYK with the troika delegation yesterday to discuss the provident funds. According to the report, the troika referred to the Ministry of Finance and the management of Bank of Cyprus for the provident funds as well as ETYK’s request for an improvement of the early retirement plan.

Other headlines:

- CAIR restructuring plan submitted yesterday

- New losses in tourism

- Public debt increased by €2bn

- Suspension of titles of Bank of Cyprus

The newspaper “Alithia” refers to the reaction of the parties to the proposal for the separation of Bank of Cyprus in commercial and real estate bank. According to the report, the parties believe that decisions for the future of the bank must be taken by real owners, its former depositors and curren shareholders.

The “Economy” inset of the newspaper refers to the estimates of the troika delegation after their contacts. The troika believes that fiscals are on track but there are delays in the sector of reforms and much needed to be done for the benefit policy of the state.

Other headlines:

- Seeks improvement of plan in BOCY

- Approval of the RES sponsorship plans

- CSE slightly up

- US still top investor in Europe in 2012