|
One big reason the eurozone countries are limiting their aid offer and pressing for deposit seizures is that the rescue loans they hand out are guaranteed by their own taxpayers. Did anyone mention it's an election year in Germany? The feeling among German lawmakers, who would have to approve any deal, is that bailing out Cyprus to keep it in the eurozone would be a necessary evil
-- better than a euro exit. But using German taxpayer euros to spare the deposits of Russian businessmen who stashing their loot in Cyprus? No. THE EUROPEAN CENTRAL BANK -- The ECB has been letting the Cypriot central bank keep the country's two biggest lenders afloat through emergency loans. Problem is, the ECB's rules forbid lending to insolvent banks
-- and with no bailout the banks are obviously broke. So the ECB has said it will force the Cypriot central bank to turn off the money tap on Monday if there's no deal. RUSSIA -- Cyprus is a favorite destination for Russians looking for a safe place to keep assets. Some 37 percent of deposits are held by foreigners
-- and that may be understating it, since some foreign depositors and companies may have set up in Cyprus itself. The idea that wealthy Russians would lose a chunk of their money through a deposit confiscation or bank collapse did not go down well in Moscow. Russia has already loaned 2.5 billion euros ($3.2 billion) to Cyprus.
But Moscow isn't rushing to offer more help despite a frantic visit there by the Cypriot finance minister. And eurozone officials are warning: more loans beyond the 10 billion euros ($12.9 billion) aren't the answer, that's too much debt. The Russians and their giant, state-connected gas company, Gazprom, might have interest in getting their hands on gas deposits near Cyprus. There's also been vague talk of possibly installing a Russian military base. At what price, though, is the question.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor