IIF: Eurogroup decision on Cyprus violates EU laws

Posted by in Economy

Eurogroup’s decision on Cyprus was a failure, a top official of the Institute of International Finance told a Cypriot newspaper on Sunday.

Hung Tran, the First Deputy Managing Director of the IIF, told Phileleftheros newspaper in Nicosia that the decision to impose a haircut on Cypriot bank accounts was “a bad decision,” as it affected the guaranteed deposits of up to 100,000 euros.

“It violates the European Union directive and by doing so it undermines the sanctity of secured deposits. That is why I believe it was a bad decision,” he said, hoping that would not be extended to other countries.

Tran was a key assistant to Charles Dallara who helped Greece in the implementation of the restructuring of its debt (PSI) last spring.

Meanwhile a report on a Greek website said on Sunday noon that there is a hiccup in the process of the absorption of Cypriot bank branches in Greece by Piraeus Bank as a funding gap is hampering the procedure.

Early estimates said this obstacle was not insurmountable. (via ekathimerini)