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Showing posts with label Dijsselbloem. Show all posts
Showing posts with label Dijsselbloem. Show all posts

Monday, March 31, 2014

Bank governor disagreed with the 'bail-in' of Cyprus



Οutgoing governor of Cyprus' central bank Panicos Demetriades has said for the first time that he had disagreed with the IMF's assumptions on the island's 'bail-in'.

The "bail-in" occurred last March after IMF debt sustainability analysis determined the country could not afford debt exceeding 100 percent of its GDP.

Demetriades, who steps down in early April, said that in hindsight, data shows that the IMF could have used a higher benchmark of debt to GDP. Αnd this would have limited the bail-in.  Had lenders used a benchmark of 120 percent, an additional 3.6 billion euros could have been made available, restricting  the bail-in of depositors to one bank instead of two.

He also told Reuters in an interview that the IMF was "challenged" on the matter, but "never moved from their position".

This, he added, would have limited the shock to confidence and would have made it easier for Cyprus to recover.

Wednesday, May 08, 2013

MEPs set to dig deeper into Troika's Cyprus deal

Pressure to reveal how the Cyprus financial plans were hatched would continue, the chair of Parliament's economic and monetary affairs committee, said on Tuesday when she closed a debate with Eurogroup President Jeroen Dijsselbloem that left various MEPs less than fully satisfied on the quality of the answers provided.

Responding to critical questioning, Mr Dijsselbloem defended the plan as the "best possible outcome" and said a rethink of Eurogroup decision-making was not realistically on the cards.

Mr Dijsselbloem and the Eurogroup as a whole came in for criticism from all political groups. The centre-right MEP Jean-Paul Gauzès (FR) said that the Eurogroup was responsible for having caused huge collateral damage to the trust in the EU as a result of its poor communication.

Sven Giegold (Greens, DE) slammed Mr Dijsselbloem's responses as being "unacceptable" since they did not provide the details needed to understand how the "bad outcome was reached". He also asked for a full written explanation to be provided. Udo Bullman (S&D, DE) said that the Eurogroup needed more parliamentary control at European level since it had come "very close to causing a bank run with the first plan for Cyprus".

Mr Dijsselbloem defended the intergovernmental structure of the Eurogroup saying that this was what the current political context would realistically allow. He also contested the view of many MEPs that the plan for Cyprus was a bad outcome. 

He assured MEPs that lessons had been learnt and that the EU was in a better position to face new challenges now that it had new instruments and a stronger Commission to enforce discipline.

Reacting to Mr Dijsselbloem's replies, Sylvie Goulard (ALDE, FR) said that he was "the most optimistic undertaker". She asked him to deliver an agenda to avoid another Cyprus situation and to end the nationalistic decision-making of the Eurogroup.

Asked by Jurgen Klute (GUE/NGL, DE) whether Cyprus should not be compensated because part of its crisis was a result of the write downs of Greek debt, Mr Dijsselbloem said that there was no case for this since Cypriot banks had chosen to invest in Greek banks and when they did this it was already a risky strategy. 

Committee chair Sharon Bowles (ALDE, UK) said it was not fair to place all the blame on the island's banks since they were acting on promises that there would be no write downs and also at the instigation of various European political actors.

On a more general level, Mr Dijsselbloem refused to enter into the debate on whether austerity had run its course when asked this by Dirk Jan eppink (ECR, BE). He simply replied that everyone should take responsibility for what was agreed and deliver on their promises.

The hearing, organised to shed more light on the processes which led to the financial plan for Cyprus, will continue on Wednesday morning when committee MEPs will hear testimony from Commissioner Olli Rehn and ECB Executive Board member Jorg Asmussen.

(European Parliament / Economic and monetary affairs / 07-05-2013 / 18:16)
REF. : 20130507IPR08062

Sunday, April 14, 2013

All Eyes on Cyprus



Guten Morgen, my fellow bloggers.  I am alive and well and practicing my German… Has anyone heard any news about Cyprus these past few weeks? ;)

We, here, in the money laundering island are doing well, thank you for asking… Reading some of the articles in the warped media make it sound like the Russian Mafiosos have swarmed Cyprus.

I can understand how people may think this is a true representation because some of our EU partners have claimed that Russian funds were deposited and invested in Cyprus via illicit means, but it appears those very same governments are now enthusiastically spreading their arms wide open and encouraging relocation of these so called “illicit” funds into their own economies…  Shock… Shock, I say!

On a bright side of things – if you can call it that – people around the globe now know where Cyprus is on a map… am I right?!  Individuals from jewelers who follow the spot price of gold,  to educators to investors to politicians, have all been focusing in the events taking place on this island these past few weeks…

There was a “running joke” that if Turkey were to make a dash for more land or gas deposits located in the south of the island, people around the globe wouldn't even know where Cyprus is located, let alone hear it on the news, but all of that has changed now…

Cyprus had banking issues; the market reacted.  Cyprus planning to sell its gold reserve; gold prices drop.  It clearly goes to show that Cyprus is part of the global economy, and going forward, Ankara should be fully aware of that.

Instead of threatening, it should be extending a hand of reconciliation… instead of sending and reinforcing troops to the northern part of the island, it should comply with international laws and obligations.  While we now have the global media’s attention on this island now looking for the mob bosses digging holes to secure their illegal money, maybe some in the warped media can now actually report some real news like the next time a Turkish war plane flies over the Republic of Cyprus.  Hey, it could happen…

It goes without saying, these past few weeks have been trying times for Cyprus, however with the media conversing on this island seeking blood, instead saw people waited in line at banks in a civilized manner and there were no towns burned down… For shame!  I guess the media came down here for a holiday which is a good thing because we need the money…  And yes, our world renowned hospitality still exists.

In short, Cypriots survived and hold their heads high after the Turkish invasion… and we can do it again.

Abschied!  That is, “goodbye” in German, my fellow bloggers… I know… it sounds a lot like Ape shit.  Ha!