Cyprus banks will not resume operation until Marсh 26

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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.

 With Monday a scheduled bank holiday, the official said there was no prospect of banking resuming before Tuesday.

 Cyprus banks have now been closed since Saturday to prevent a run on accounts after the government clinched a deal for a bailout that slapped a one-time levy of up to 9.9 percent on bank deposits.

 The measure was rejected by parliament on Tuesday, plunging the island into a fresh economic crisis.

 Russia may denounce double taxation avoidance accord with Cyprus – Medvedev

 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.

 

 “We have an agreement on avoiding double taxation with Cyprus. I do not know whether we need this agreement in this case,” Medvedev said  in an interview with a number of European media and Interfax.

 “The issue  of rupturing  the agreement,  of denouncing  it may  be raised,” he said.

 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.

 “There can be very, very many consequences,” Medvedev said.

 Cyprus situation may evoke series of local financial crises

 Russian Prime  Minister Dmitry Medvedev thinks that the situation in Cyprus may be the beginning of a new series of financial crises.

 “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.

 Asked whether the decision taken to solve the Cypriot debt  problem will affect  Russia-EU relations,  Medvedev said:  “We must  wait  until final decisions are made.”

 Not only EU should discuss Cyprus financial problem 

 Russian Prime  Minister Dmitry Medvedev thinks  that discussions  on possible  solutions to  the Cypriot debt problem should involve not only the European Union but also other interested parties.

 “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.

 “Then let them make all decisions within the European Union, but  I am not sure that this is good,” he said.

 EU, Cyprus actions to solve debt problem resemble a bull in a china shop

 Russian Prime  Minister Dmitry Medvedev  has  criticized  the  actions of  the  EU  and  Cypriot government to resolve the debt problem.

 “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.

 “It seems to  me that every  possible mistake that  one  could have done in this situation has already been done,” he said.

   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.

 However, all of those actions should not lead to the destruction of the banking system, he 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.

 Voice of Russia, RIA, AFP, Interfax

http://english.ruvr.ru/2013_03_20/Cyprus-banks-will-not-resume-operation-until-Marsh-26/

 



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