Deposits

The future of Cyprus will be determined in the coming hours

Will AZERBAIJAN Recognise NORTHERN CYPRUS?

The future of Cyprus will be determined in the coming hours

Cyprus lawmakers are trying to find a way to save the country’s financial system

The Cypriot authorities said that the country’s future will be determined on Friday, when parliament begins to discuss ways to save the country’s financial system and the conditions for receiving financial assistance from international lenders..

“The next few hours will determine the future of the country. We all have to take on our share of responsibility, ”said Cypriot government spokesman Christos Styliniades.

Cyprus lawmakers have to consider several proposals designed to raise 5.8 billion euros in the treasury.

Such a condition was put forward by international lenders in exchange for providing the country with a financial assistance package in the amount of 10 billion euros. In accordance with the requirements of the European Central Bank, a solution must be found by March 25.

If a solution cannot be found, Cyprus will default, and therefore, the country may become the first state forced to leave the eurozone.

Cyprus is currently considering restructuring at least one of the country’s largest banks, Laiki. This bank, along with the Bank of Cyprus, called on parliament to introduce a tax on uninsured deposits exceeding 100 thousand euros.

However, earlier this week, following violent protests from the public, lawmakers rejected a proposal to tax any deposits, including uninsured ones..The future of Cyprus will be determined in the coming hours A tax on the largest deposits would be a serious blow to Russian oligarchs who hold large sums of money in Cyprus, which is considered a “tax haven” for offshore investors..

Cyprus asked for a new loan from Russia, which at first rejected this request, but then Prime Minister Dmitry Medvedev said that Russia could still agree with Cyprus to provide him with assistance, but only after the Cypriot authorities reached an agreement with international creditors.

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