World Bulletin/News Desk
Cyprus said on Friday it would continue discussions with international lenders in an attempt to reach an agreement on its bailout request, but could not specify when a deal might be concluded.
"We are working with the troika to be able to conclude a memorandum the soonest possible," government spokesman Stefanos Stefanou said after government ministers met representatives of the European Commission, the European Central Bank and the International Monetary Fund on a visit to the island.
Cyprus sought emergency financial aid from its EU partners on June 25 to buffer a banking sector hammered by exposure to Greece, becoming the fifth euro zone country to need a bailout.
The island's two largest banks booked significant losses on the restructuring of Greek debt earlier this year, impairing regulatory capital and forcing them to seek government aid to recapitalise.
It is unclear how much Cyprus, the euro zone's third smallest economy, will require. The bailout will be comprehensive, and not limited just to the banking sector.
With a GDP of just 17 billion euros, some assessments have placed the bailout amount as high as 10 billion because of the further fallout potential from Greece.
Sources close to the consultations have said there is a divergence on how much Cyprus may need, with the government's assessment being lower than that of the Troika, but without providing any figures.
Cyprus is also discussing a 5 billion euro loan request with Russia, a close political and business ally.
Run by a leftist government which only reluctantly submitted a bailout request after the world's third ratings agency downgraded the island's debt to junk, Cyprus has been at pains to stress to lenders it will not take harsh austerity measures, spooked by the experience of Greece.
"Austerity won't provide the exit from the crisis, there needs to be support for growth and social cohesion," Stefanou said.
"We have underlined the need for balanced and mild measures which will not trigger social upheaval, and will preserve industrial peace," he said.
Authorities have refused to comment on widespread reports that the Troika has suggested salary cuts in an inflated, and highly unionised, public sector workforce and the withholding of Christmas bonuses.
There have also been reports of privatising semi-government corporations like Cyprus telecoms agency Cyta and the electricity authority.
Asked whether there were disagreements, Stefanou said: "When there is a need to continue, it means that there are different approaches on various issues, but on the other, it means there is prospect for convergences on various issues. We will exhaust all effort to reach convergence."
Given all the uncertainty, investors were pricing in a chance of a rate cut with some analysts expecting the Bank of England to consider quantitative easing to cushion the economy
The Egyptian stock index was down 5.8 percent in early afternoon.
The pound sterling sees its lowest level against the the US dollar in over 30 years
A subsequent survey that included people of all ages found that somewhat older Americans also are skeptical of capitalism.
California is now the sixth largest economy in the world, surpassing France thanks to a robust state economy and the strength of the US dollar.
Overnight lending rate gets cut by 50 points to 9 percent, while overnight borrowing rate remains unchanged at 7.25 percent
Says 2016 business report 'clear indicator' it is improving its economic record despite fall from 46th to 49th
Turkish Cypriot leader says negotiations on federal system close to completion
Britain votes on June 23 on whether to stay in the 28-member bloc, a choice with far-reaching consequences for politics, the economy, defence and diplomacy on the continent.
1 in 18 families has a member who left Greece after 2010, and 12 pct of new refugees are older than 40
Surplus during Jan.-May period stood at $3.1 billion, says finance minister
Remote, impoverished town expects well-to-do Chinese buyer to spur its fragile economy
Austrian company is to have 75 percent of total stakes of Turkish company after agreement concluded
Apple, Microsoft, Alphabet, Cisco and Oracle hold about $504B, approximately one-third of all corporate cash in the United States
The Fund's head says 'corruption has a pernicious effect on the economy'