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IIF: Eurogroup decision on Cyprus violates EU laws

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)

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  1. Interesting article by Colm McCarthy who slams the Eurogroup, Germans and all the usual suspects for this disaster.

    He also blames the mess that Cypriot banks are in was because they “…suffered large haircuts on holdings of Greek government bonds in the EU-sponsored default in March 2012…”.

    Good article. KTG, I can send you the link via hotmail for your review if you want it.

    • keeptalkinggreece

      thanks, I saw it earlier and integrated some parts on my latest post.

      • Great.

        I get the distinct impression that he believes this whole EU circus is being led by a bunch of clowns at the direction of the banksters.

        What better way to enslave you than to impoverish you first?

  2. Colm McCarthy is prof in Economics in University College Dublin. He is, and has for a very long time, been the darling of successive Irish governments, producing report after report on what should be done, while nothing was ever done because it was “not popular”. However, he never ever put is finger on the real problem, the system itself. Instead, he was, and still is, a serious advacate of band-aid economics. Cover it up and it will go away…
    Make no mistake, the guy is really nothing but a highly paid number cruncher who see everything and EVERYBODY as either a black or a red number. If you’r red, you get squashed. What is only too often forgotten is that the so despised economics that got us here are the very same economics advised by amongst other Mr. McCarty so many years ago, when the seeds for the current rot were sown by the then Irish PM C. Haughey and the subsequent FinMin C. McGreevy, later to be EU commissioner. This is very much a case of pots and kettles.

    • Thanks for the information. I dunno, it just seems like ECB, INF , Eurogroup walk country after country into crises after crises. Like a spider they seem to walk each victim deeper and deeper into their web. Where is the end of the road? Like I stated above; What better way to enslave you than to impoverish you first?