My Twitter Feed

March 29, 2017

Archives:

14 Year Old Child Bride Facing Death Penalty for Murdering Husband -

Saturday, November 29, 2014

BREAKING: New Coal Disaster In West Virginia -

Tuesday, February 11, 2014

U.S. Hostage Freed by Colombia’s FARC Rebels (Video) -

Monday, October 28, 2013

Here’s Why The Zimmerman Verdict Matters -

Sunday, July 14, 2013

BREAKING! UK Government Spied On Allies At TWO G20 Summits (Video) -

Sunday, June 16, 2013

Swiss Support Tougher Asylum Legislation as Refugee Numbers Spike -

Monday, June 10, 2013

American Woman Killed in Syria Fighting for Terrorists, Syrian TV Claims (Video) -

Friday, May 31, 2013

CO2 in the Air Reached its Highest Level in Human History -

Friday, May 10, 2013

Terms of the New Abortion Bill Agreed by Irish Cabinet -

Wednesday, May 1, 2013

Boston In Lockdown As Manhunt Intensifies -

Friday, April 19, 2013

2 Dead, Dozens Injured After Boston Marathon Bombing -

Monday, April 15, 2013

Fast Food Workers in New York Stage Surprise Strike -

Saturday, April 6, 2013

N. Korean Rhetoric Provokes Missile Shield Deployment -

Wednesday, April 3, 2013

Eyewitness Accounts from Meiktila Massacre -

Wednesday, April 3, 2013

Sudan to Free All Political Prisoners -

Monday, April 1, 2013

A New Free Press In Burma Juxtaposed With Genocide: The World Will Be Watching -

Friday, March 29, 2013

Pressure Builds to End Ethnic Violence in Myanmar -

Friday, March 29, 2013

Activists Demand Action As Further Genocide Looms -

Tuesday, March 26, 2013

Cyprus Reaches Last-Minute Bailout Deal With EU -

Monday, March 25, 2013

Myanmar Muslims Brace for Possible Genocide -

Sunday, March 24, 2013

Cyprus Reaches Last-Minute Bailout Deal With EU

Struggling European Union member country Cyprus reached a last-minute deal on Monday morning with the international lenders, to shut down its second-largest bank in return for a €10 billion ($13 billion) bailout. Critics say the deal would inflict heavy losses on uninsured depositors that include a large number of wealthy Russians.

After charged negotiations between the Cyprus President Nicos Anastasiades and the heads of the European Union, the International Monetary Fund (IMF) and the European Central Bank, an agreement emerged to avert a collapse of the banking system – hours before the deadline.

This agreement is aimed at preventing the Mediterranean island from experiencing a financial meltdown and becoming the first country forced out of the single currency. While especially wealthy Russians will lose billions of euros as a consequence of this deal, savers with deposits of less than €100,000 will be spared.

The Cyprus Popular Bank, also known as Laiki, will be closed, with all of its good assets transferred to Bank of Cyprus. Those with more than €100,000 in Laiki will be hit the hardest. Deposits above € 100,000 in both banks, which under EU law are not guaranteed, will be frozen and used to recapitalize Bank of Cyprus and to settle Laiki’s debt.

With the closing of Laiki, thousands of jobs are expected to be lost. Signs of panic was starting to show last week when a €100 per day limit was imposed on ATM withdrawals from the two biggest banks, to avert a run. Even stricter capital controls are expected after the deal is finalized.

Last week, the European Central Bank threatened to cut off funds propping up Cypriot banks if no agreement was reached by this Monday. This would have precipitated Cyprus’ exit from the euro zone.

“It is a bad deal” said Lefteris Christoforou, vice-chairman of the ruling Democratic Rally party, “but the extreme scenario we had to contend with was worse.” With this deal, Cyprus had avoided a full blown bankruptcy.

French Finance Minister Pierre Moscovici rejected charges that the EU had brought Cypriots to their knees, saying it was the island’s offshore business model that had failed. He said, “to all those who say that we are strangling an entire people … Cyprus is a casino economy that was on the brink of bankruptcy.”

This is not the end of the story for the small island. Most probably, a second bailout will be part of the new future. Cyprus faces a gloomy economic future as the country’s economic model seems destroyed and a brutal austerity program is being imposed on its people as a condition of the €10 billion loan..

Clarissa Frankfurt (20 Posts)

Clarissa Frankfurt is a law student at the University of Fribourg in Switzerland. While her country of origin is Switzerland, she has also lived in America for 4 years and in Germany for 3 years. Her Master studies are concentrated on International law and Human Rights, as well as Diplomacy. When she’s not studying, you can find Clarissa online blogging about politics, mainly American politics, social issues such as Women’s Rights and equality for the LGBT community, Democracy and Human Rights (http://tocareornottocare2012.wordpress.com/). Offline, you can find Clarissa playing the violine in the university orchestra, teaching English, taking part in Model UNs (...MUN) or fanatically shooting hoops.