World Bulletin / News Desk
Greek Cyprus's international lenders began reviewing how the island is meeting the conditions of it 10 billion euro bailout on Wednesday, looking to see whether it should get the next tranche of aid.
The appraisal is the first since Greek Cyprus secured a deal with the International Monetary Fund, the European Commission and the European Central Bank in March, pulling the cash-starved country away from the brink of financial meltdown.
It dealt a harsh blow to thousands who lost their savings in two major Greek Cypriot banks, however.
Nicosia received a first tranche of aid in June worth 3 billion euros and euro zone finance ministers will decide on whether to issue the next tranche in mid-September, the size of which is yet to be determined.
Greek Cypriot President Nicos Anastasiades said last month that some provisions of the bailout deal needed tweaking to address problems in the island's battered banking sector.
Greek Cyprus had to wind down one lender, Laiki Bank, and use customer deposits exceeding 100,000 euros to prop up another, Bank of Cyprus, as part of the bailout agreement.
One area of focus for the so-called troika of lenders during the two-week review will be why the central bank has yet to finalise how much equity Bank of Cyprus shareholders will receive in exchange for giving up their deposits, a process known as a bail-in.
Finance Ministry officials are keen to see the resolution settled, worried that the uncertainty it is causing is preventing an easing of capital controls, introduced to prevent a cash flight after the bailout was agreed in March.
"Swiftly exiting the resolution status would allow us to take new steps to further ease, and ultimately eliminate capital controls," Finance Minister Harris Georgiades said on Tuesday.
An independent audit of Bank of Cyprus assets is under way, which would define precisely how much of depositors' cash would be seized.
The island has promised its lenders that it would consider the option of selling some of its gold reserves to help pay down its debt but Georgiades said on Tuesday that that was only one option under consideration.
Under the bailout, Greek Cyprus has agreed to cut its budget deficit to 2.4 percent of GDP in 2016, from an estimated 5.9 percent this year.
Although foreign banks on the island were exempt from most restrictions imposed under the bailout, customers at banks in Greek Cyprus are limited to withdrawals of up to 300 euros a day, cheques cannot be cashed and bank transfers are vetted.
Those restrictions are adding to an acute credit crunch caused by financial institutions which are jittery about their balance sheets in a rapidly deteriorating economy and have put the brakes on lending, economists say.
"Banks aren't lending," said economist Yiannis Tirkides, who did not wish to disclose the name of his company. "A lot has to do with expectations, and that contributes to the uncertainty," he said.
Stabilised political and security situation, the launch of government initiatives toward fiscal consolidation and strong support from external donors are some of the reasons given for improved economic outlook.
Norway will not supply gas to Europe in case of supplies being cut by Russia, says Norwegian Energy Minister Lien
A fall in global oil prices, down more than 20 percent from this year's June high, means that ending costly diesel subsidies will save the government money without hurting consumers.
EU officials said the gas talks would continue in Brussels next week, with Poroshenko telling reporters that the financing still needed to be resolved.
The food-producing regions of Guinea, Sierra Leone and Liberia in West Africa have been severely affected by the worst outbreak on record of the viral haemorrhagic fever
Fall in crude oil prices will effect Iran's oil industry more than Western sanctions
Widodo currently plans to raise the price of both gasoline and diesel by 3,000 rupiah ($0.25) per litre by November, the advisor said.
Mario Pezzini and Romano Prodi jointly emphasized that Africa should be of priority for European Union’s future development policies.
Analysts say that some form of disruption of Russian flows to the EU is likely this winter
Chrysler is recalling about 470,000 cars and SUVs globally from model years 2011 through 2014 and equipped with a 3.6 liter engine and a 160 amp alternator
Oil prices continue to slide with surging production and weakening economic news. Venezuela has called for an emergency meeting of OPEC
Only one in four Russians said the measures would be harmful to the economy. About one in four of those polled also said sanctions could pose serious problems for them or their families
Zuma said the government wanted 30 exploration wells drilled in the next 10 years.
Bosnia and Herzegovina need to handle energy reforms at state level to implement EU's Third Energy Package
The five countries' horticulture exports will again be exempted from EU customs duty once the new deal comes into force.
Renzi's government has been keen to woo cash-rich buyers from China