Returning ghost town will be the key to a successful conclusion of peace negotiations

Foreign Minister Ioannis Kassoulides has said in an interview with our television station that the return of the fenced off city  Famagusta by Turkey will be the key to a successful conclusion of peace negotiations.

Kasoulides said that only something big in the form of confidence building would convince public opinion that Turkey had the will for a solution.
He also said that two or three more negotiating sessions are needed for the two sides to present a complete set of proposals on a solution and a long period of detailed negotiations will follow to bridge differences.

Kasoulides categorically stated that Turkey cannot prevent Cyprus from exploring and exploiting hydrocarbons in its marine exclusive economic zone.

He added that the discovery of hydrocarbons has a large bearing on Cypus' regional policy.

Kasoulides said that relations with Russia remain excellent despite the Ukraine crisis.

He added that he conveyed some important messages to EU chief of foreign affairs Catherine Ashton from his Russian counterpart, Sergei Lavrov, with whom he met recently in Moscow.

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.

The First Forcible Change in European Borders Since World War II... Uh...NYET!

Forgotten Cyprus

Take a look at the warped media, here, from the Financial Times describing the Crimean referendum as a "divorce at gunpoint".  Okay.  So it's not a "peaceful and consensual" referendum akin to the one that will happen in Scotland, it says.  Alright.  "Instead, it is a figleaf for a forced territorial annexation – the first on the European landmass since the end of the Second World War."  That media talking point quote is a little different from what was previously their go-to line which was this quote: "the first forcible change in European borders since World War Two".  

The media is spreading misinformation.  They are talking as if there was no Turkish invasion of Cyprus, no occupation, no alteration of the island's identity by importing Turkish settlers, and no ethnic-cleansing. Nooo, it was all a bad dream.  I feel like I'm in the Twilight Zone... Do di do doo, do di do doo ♪ 

Speaking of going to war on trumped up pre-text...Here's Johnny! Just a few days ago, Turkish officials planned false-flag attacks to create pretext for war with its middle eastern neighbor.  I'm shocked!  Really... Honestly.  I truly am!

Angelina... hello (tap, tap) is this thing on?! Testing, one two...Hey, Angelina Jolie, come to Cyprus and urge action against the use of sexual violence as a war weapon!  How was this acceptable behavior?!

It seems now the West is looking to wean itself from Russian natural gas and one possible place they are looking is Cyprus and the natural resources located off its southern shores.  Europe is speaking with one voice right now regarding the unity of Ukraine.  What are the chances we see that same unity once the "urgent" upcoming Cyprus settlement talks begin?  Let us see what kind of demands they expect from the victim THIS time around.

Somebody wake me up... What a nightmare!

Cypriot Banks Get A Rating Boost

Moody’s Investors Service has taken upgraded action on three Cypriot banks - Bank of Cyprus, Hellenic Bank and Russian Commercial Bank (RCB).

Τhe rating action comes in the wake of the recent affirmation of Cyprus’ Caa3 government bond rating and the corresponding outlook change to positive from stable.

For Bank of Cyprus, the island’s largest lender, Moody’s has changed the outlook to positive from negative and affirmed the bank’s Ca long-term deposit ratings. 

Moody’s has changed Hellenic Bank’s outlook to positive from negative and affirmed the bank’s Caa3 long-term deposit ratings.

As for RCB, Moody’s has changed the outlook to stable from negative and affirmed the bank’s Caa2 long-term deposit ratings. 

On the Bank of Cyprus, Moody’s notes the ratings “capture the high risk that the bank will be faced with additional capital needs stemming from future credit losses”.

“While Moody’s expects the sale of the bank’s non-core assets to support the bank’s regulatory capital levels (core Tier 1 equity stood at 10.2% as of December 2013), the rating agency believes that the weak domestic economic environment, high unemployment rates and on-going property price correction will lead to high problem loans and credit losses that will erode capital.”

It added that the bank’s funding profile remains vulnerable to fragile depositor confidence and the bank has limited excess liquidity buffers to withstand any further deposit outflows (cash and interbank balances stood at 8% of total assets as of December 2013).

The positive outlook on Bank of Cyprus Ca deposit ratings follows the change in outlook of Cyprus government debt ratings to positive, from stable, and captures a potentially higher capacity of the government to provide external support to the bank to meet any capital and liquidity in case of need.

For the Hellenic Bank, Moody’s notes that the weak domestic operating environment will also lead to high problem loans and credit losses.

However, it points out that the raising of Hellenic’s standalone BCA acknowledges that these risks are partly balanced by the bank’s improved capital position, following Hellenic’s successful capital raising exercise in November, executed without any state intervention.

Hellenic’s Tier 1 capital ratio stood at 13.1% as of December, which provides a buffer against high credit losses. 

Moody’s said Hellenic had a healthy liquidity profile, to counter any further deposit withdrawals, with no reliance on Central Bank funding.