Cyprus Mail newspaper

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Cyprus Mail www.cyprus-mail.com

Saturday, March 23, 2013

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CYPRUS

SPORT

TECHNOLOGY

Cyprus must pick itself back up and start again 7

West Ham to move to Olympic Stadium back

Samsung said to be working on a rival to Apple’s ‘iWatch’

Tomorrow in

FREE with your Sunday Mail People The Paphos resort manager aiming to raise €30,000 for kids’ charity

People

The House Whisperer coming to Cyprus to sort out home problems p

Fashion The items you really should be buying for Spring

Competition Win an overnight stay for two at the Ambelikos AgroHotel

15

‘We all share in the blame’ Ruling DISY says sorry as House reluctantly gives in to pressure

P

ARLIAMENT last night approved bills providing for the resolution of banks and putting capital controls in place and was also poised for a dramatic U-turn on taxing big savers as it raced to clinch a bailout from the European Union to avert financial meltdown. The island’s legislature also adopted a law that creates a “solidarity fund” whose purpose would be to fund banks and contribute to the state’s financing. In a session that ended just before midnight, MPs approved a bill that allowed the government to split the island’s failing lenders into good and bad banks, a move that caused uproar as it will be used to resolve the Popular Bank. The bill was approved with the votes of 26 MPs – DISY and DIKO – while main opposition AKEL abstained, effectively facilitating its passage. Two MPs voted against. “It is our conviction, that this effort, starting tonight, will be the beginning of fresh suffering for our country,” AKEL leader Andros Kyprianou said. “Unfortunately our (EU) partners took decisions not to support us but to lead us to catastrophe.” Ruling DISY deputy chairman Averof Neophytou apologised to the Cypriot people, admitting that “we all share the blame” that brought the country to the current sorry sate. He stressed however that Popular’s resolution

spared the overwhelming majority of savers and jobs, as opposed to letting it collapse. MPs unanimously passed legislation giving the government the power to impose temporary capital controls to prevent the outflow of deposits that would put the financial sector in jeopardy. Cyprus moved perilously close to bankruptcy when its parliament rejected terms of an EU bailout on Tuesday. Cypriots were enraged by a levy on bank accounts, including small holdings of ordinary savers as well as large accounts, many held by foreign investors. But it appears that the island was prepared to make a U-turn on the matter in a bid to avoid worse consequences. Finance Minister Michael Sarris, fresh from a failed trip to win funds from Moscow, said a bank deposit levy was back “on the table”. Party officials said that discussions were centred on a levy on depositors (AFP) holding over €100,000. One Employees of Laiki (Popular) Bank protest outside parliament yesterday official said the tax could be limited to big savers at the island’s biggest lender, Bank of Cyprus, at 25 per bling to come up with a bailout deal with the cent. It is understood that By Bejay Browne and Maria Gregoriou European Union to stave off the financial systhe bill must be approved tem’s collapse. by international lenders A Paphos police spokesman said: “We are before it was brought to BANK customers across the island who are withdrawing large sums of cash in the wake of aware that many people are withdrawing sums parliament. In a sign it expects a so- the shaky financial climate in Cyprus are being of money from cash machines and are carrying a lot more money than they would usually. lution soon, the group of warned by police to be extra vigilant. Police said security and safety concerns have We have put measures in place which include eurozone finance ministers called a new meeting for been raised by all the extra cash carried around more police patrols in all areas, especially outside bank ATM’s. We haven’t had any reported tomorrow in Brussels, two by people or stashed in their homes. Long queues have formed at ATM’s across instances of robberies or bag snatching as yet sources in the currency the island with depositors withdrawing as and we hope this will remain the case.” TURN TO PAGE 5 much cash as possible - amid leaders scram-

Police issue advice to cash-carrying public

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