Banks in debt-hit Cyprus will stay closed until at least Tuesday, a Central Bank official told AFP, after the authority issued a decree stating banks will not open their doors on Thursday and Friday.
Russian Prime Minister Dmitry Medvedev has not ruled out that Russia may raise the issue of denouncing an agreement on avoiding double taxation with Cyprus, if the latter’s banking system stops meeting the interests of Russian capital.
The collapse of Cyprus’ banking system may entail a lot of consequences, he said. “We have here our reasons and national interests: both banks and a large number of Russian businessmen keep their assets there.”
“And this does not mean that they try to hide behind the curtain of Cyprus’ special jurisdiction. No, this is just a comfortable form of work. You all know how a large number of firms work through SPVs, and this is a common international practice,” he said.
“Beyond any doubt everyone in the EU is concerned about this situation which may trigger a new series of local financial crises,” Medvedev said in an interview with a number of European media and Interfax.
“It seems to us that such negotiations and solutions should have been discussed with various interested parties, rather than hidden behind the phrase that ‘Cyprus ought not discuss it with anyone else’,” Medvedev said in an interview with Interfax and a number of European media.
“So far actions of the European Union, the European Commission together with the Cypriot government regretfully resemble a bull in a china shop to me,” Medvedev said in an interview with Interfax and a number of European media.
Confidence in financial institutions not based in Cyprus has been undermined, he said. “Our harsh assessment is linked to this. We are for bringing order to the financial sphere in order to take measures to revitalize banks, and naturally to have transparent information on the owners of accounts and beneficiaries,” Medvedev said.
“Regretfully, it – the Cypriot banking system – is in a very difficult situation. In fact, it was stopped, not to say that the financial situation of this EU member is close to a default,” Medvedev said.
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