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.
GM plans to build five more plants in China next year, as part of its efforts to ramp up manufacturing capacity there by 65 percent by 2020
Production from conflict-free mines are bagged and tagged with a barcode to make it easily traceable.
"We will further expand our capacities to be able to respond to the high market growth," Jochem Heizmann, head of VW's China operations told reporters on Saturday ahead of the Beijing auto show.
The State Duma lower house on Friday ratified a 2012 agreement to write off the bulk of North Korea's debt. It said the total debt stood at $10.96 billion as of Sept. 17, 2012.
Mt. Gox, once the world's biggest bitcoin exchange, is likely to be liquidated after a Tokyo court dismissed the company's bid to resuscitate its business.
Discussions will continue in the days and weeks ahead, but there is no particular deadline for concluding the talks, the official added.
Russia's oil output stands at over 10 million barrels per day, the world's largest, but it needs new sources of crude oil, including hard-to-recover deposits and the Arctic, to sustain this level
The strike at Yue Yuen is not just one of China's biggest in recent years, it's also more clearly driven by workers' fears that they have been scammed by an opaque and convoluted welfare payment system.
When the system is in place citizens will be able to buy a limited amount of subsidised fuel, and will have to pay a normal, market price for any extra quantities.
Production in Upper Nile state's Paloch oilfields, where output has not been hampered by the conflict, stood at 159,000 barrels per day this week.
Dragomir Stoynev accused fellow European Union members of a politically-motivated attempt to scupper the project, and urged the bloc to understand the effect that doing so would have on its members.
The drops have come mainly because Japan did not take any cargoes in March and South Korea is not scheduled to take any shipments in April, according to the tanker data.
Japan's finance ministry and central bank have declined to comment on the payments.
But a survey shows that most people believe inflation is speeding up and could surpass 37 percent this year.
A fifth payment of $450 million was due on April 15, contingent on Iran having diluted half of its most sensitive stockpile of nuclear materials
The year-on-year inflation rate in the 18 countries sharing the euro was 0.5 percent in March against 0.7 percent in February, the European Union's statistics office Eurostat said.