Internal borrowing and leaning more to the Russians? Can this be the Plan B Cypriot President Nicos Anastasiades is working out, seeing that he has thin chances to have the Eurogroup imposed bailout accepted by the Parliament? According to Greek finance news website newmoney.gr, Anastasiades does not exclude the option to reject all together the eurogroup proposal for both political and financial reasons.
With big foreign depositors threatening to withdraw their money from Cyprus anyway and the cy[priot opposition to accuse Anastasiades of “national betrayal”, Anastasiades is cornered.
“Sources told newmoney, that Anastasiades considers a Plan B, “based on the idea of domestic borrowing by Cypriot citizens and a loan form a third country in order to find the controversial 5.8 billion euro required by Brussels and Berlin. Advisers to President suggest a patriotic type loan linked to securities from natural gas revenues.
Anastasiades could also consider a referendum as to whether deposits in banks should undergo a haircut or not.
The Cypriot President reportedly worries to have to take such a crucial decision for the future of the country with the majority of only one vote.
Nicos Anastasiades is angry against the Europeans in general and German Chancellor Angela Merkel in particular and he is claimed to even consider the idea, that he personally announces the withdrawal of the bailout bill.”
Speaking to foreign media correspondents on Tuesday Anastasiades declared that the Cypriot parliament would reject the bailout plan, charging it was unfair and that his government was making it sown plans.
“The parliament will not approve the deal because it thinks it is unfair,” he said. “I must tell you that the troika was not expecting this reaction.
The draft leaked to the press would eliminate the planned tax for deposits of up to E20,000. A levy of 6.75% is retained for deposits up to E100,000, a 9.9% levy for deposits up to E500,000 and a 12.5% levy for larger ones.
There are discussions to postpone today’s parliamentary votes until Wednesday to give the government more time to work on a plan B.
Cypriot Finance Minister Michalis Sarris is on an official visit to Moscow today in an effort to secure Russia’s contribution to a bailout plan, but also to assuage tensions there, as Russian depositors are expected to lose E3.2 billion if the deposit haircut is implement.
According to media reports, Angela Merkel told Anastasiades on Monday, that “he should negotiate only with the Troika” – and not with the Russians.
Merkel seems to lack knowledge of the political aspect of the “Cyprus issue” with Russland being a supporter to the Cypriot positions when it came to Turkish occupation of the island.
PS I do not know if Anastasiades really has such a Plan B, but certainly the Cypriots are better negotiators than the Greeks. They just have experience…
It says something when and EU member state needs to threaten talks with Russia to protect itself from the EU…
It also says something when a EU member state is willing to invite the Russian mob to run the country to protect itself from… Eh, with friends like that you don’t need protection anymore, I guess.
Better the mob you think you know than the one you just got to know really well…