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Cyprus Mail Saturday, May 4, 2013 €1 CYPRUS WORLD HAPPY EASTER R 'ECHR puts an end to the right of return' Prosecutor investigating Bhutto case assassinated 7 The next edition of the Cyprus Mail will be on Wednesday May 8 6 INSIDE John Cusack as Edgar Allan Poe in gripping tale Horror film follows US youths into abandoned site Wednesday, NovaCinema2, 10pm Friday, NovaCinema3, 11pm M AY 5 11 Mirror Mirror Julia Roberts has fun as the Evil Queen in Snow White remake Sunday, LTV, 9pm Eight pages of TV to see you through the week 17-24 SHOWBIZ Where is Lindsay Lohan? Not in rehab apparently 14 LIFESTYLE No light at end of the tunnel Commission sets out extent of the 'profound contraction' of economy for the next two years By George Psyllides T Lifting the veil on Oxford’s notorious Bullingdon Club centre SPORT Chelsea rollercoaster ride heading for glory back HE EUROPEAN Commission forecast what it called a ‘profound contraction” in economic activity in Cyprus over the next two years as a result of ‘painful adjustments’ the island must endure under its bailout programme. According to the spring forecast published yesterday, the island’s economy is expected to contract by 8.7 per cent this year and 3.9 per cent in 2014 mainly as a result of the conditions of the bailout recently agreed with international lenders, the Commission said. According to the EC’s spring economic forecast, the island’s real GDP is expected to decline sharply by 8.7 per cent this year “affected in particular by the immediate restructuring of the banking sector, which affects net credit growth, fiscal consolidation, and the high degree of economic uncertainty which weighs on domestic demand and investment.” The situation is worsened by the capital controls put in place to prevent the flight of deposits following the resolution of the island’s second-biggest bank, Laiki, and a haircut on uninsured savings – over €100,000 – in the Bank of Cyprus, which could ultimately reach 60 per cent. “Temporary imposition of capital controls and withdrawal restrictions are expected to hamper international capital flows and to reduce business volumes in both domestic and internationally oriented companies,” the EC said. “The bail-in of uninsured depositors implies a loss of wealth, which will also affect private consumption and investment.” And Cyprus could only look forward to more misery in 2014 as deleveraging by banks and the tight credit growth conditions will cause the further decline of gross fixed capital formation. Fiscal consolidation measures and rising unemployment are projected to weigh strongly on private consumption, the EC said. “Little reprieve could TURN TO PAGE 5 Several fires broke out yesterday afternoon in the Nicosia district, one of which was in the old town on Ermou Street. The blaze began in the north but spread, damaging six derelict buildings. Residents on both sides rushed to help SEE STORY PAGE 3 ‘Starving Virginia settlers turned cannibal’ SETTLERS at Virginia’s Jamestown Colony resorted to cannibalism to survive the harsh winter of 1609, dismembering and consuming a 14-year-old English girl, the US Smithsonian Institution reported this week. This is the first direct evidence of cannibalism at Jamestown, the oldest permanent English colony in the Americas, according to the Washington-based museum and research complex. A recent excavation at the historic site revealed not just the remains of dogs, cats and horses eaten by settlers during the cold “Starving Time” of that year, but also the bones of a girl known to researchers simply as “Jane”. Jane probably was part of a relatively prosperous household, possibly a gentleman’s daughter or maidservant, said Smithsonian forensic anthropologist Douglas Owsley, who analysed her bones after they were found by Preservation Virginia, a private nonprofit group. Her back molars had not yet erupted, putting her age around 14 years, and there was a lot of nitrogen in her bones, indicating she ate a meat-rich English diet, Owsley said in a telephone interview. It is not known whether Jane was killed or died of natural causes. TURN TO PAGE 8

Cyprus Mail newspaper

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