There may be trouble ahead...

[apc2010]

IIRC Turkey claims rights to them under the 1960 treaty

Turkey lost those rights with the invasion and all the UN resolutions asking them to leave..........

[Steve]

err, no they didn't

[apc2010]

err, no they didn't

Tricky ground ......they can't have both......

[Steve]

Tricky ground indeed.

IMHO Turkey can still argue that the 1960 treaty is valid.

[apc2010]

Tricky ground indeed.

IMHO Turkey can still argue that the 1960 treaty is valid.

And the ROC can argue the UN resolutions.........plus the fact the north is not an official country ......still an occupied area.......

[Barman]

This is probably a daft question but its been bugging me since I heard some of the details of the potential Russian bailout. If the main condition is to allow Gazprom access to the untapped oil fields why haven't the Cypriot government already utilised them as that suggests they are substantial?

A lot has been said about the value of the oil and gas...

Fact is, they don't know how much is there, they haven't got it out yet (might take 5 years) and the exploration areas are close to some of the most volatile countries in the world... big gamble isn't it...?

[Marley's Ghost (Imbiber of Spirits)]

This is probably a daft question but its been bugging me since I heard some of the details of the potential Russian bailout. If the main condition is to allow Gazprom access to the untapped oil fields why haven't the Cypriot government already utilised them as that suggests they are substantial?

A lot has been said about the value of the oil and gas...

Fact is, they don't know how much is there, they haven't got it out yet (might take 5 years) and the exploration areas are close to some of the most volatile countries in the world... big gamble isn't it...?

Bet the Israelites will want some if it's within spitting distance of Tel Aviv . . .

[Barman]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

[Marley's Ghost (Imbiber of Spirits)]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

I suppose the threat of the banks all going tits up and consequently losing all your dosh makes the idea of a 6/10% "haircut" look almost appealing . . .

Still, on the bright side, at least it gets you out of the €uro . . . .     

[Barman]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

I suppose the threat of the banks all going tits up and consequently losing all your dosh makes the idea of a 6/10% "haircut" look almost appealing . . .

Still, on the bright side, at least it gets you out of the €uro . . . .     

Theoretically, we are covered by the bank guarantee scheme if the banks go tits...

[Marley's Ghost (Imbiber of Spirits)]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

I suppose the threat of the banks all going tits up and consequently losing all your dosh makes the idea of a 6/10% "haircut" look almost appealing . . .

Still, on the bright side, at least it gets you out of the €uro . . . .     

Theoretically, we are covered by the bank guarantee scheme if the banks go tits...

Agreed.

Problem is: where's the guarantee cash going to come from?

Still think you need to brush up on your Russki speak . . .

[Barman]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

I suppose the threat of the banks all going tits up and consequently losing all your dosh makes the idea of a 6/10% "haircut" look almost appealing . . .

Still, on the bright side, at least it gets you out of the €uro . . . .     

Theoretically, we are covered by the bank guarantee scheme if the banks go tits...

Agreed.

Problem is: where's the guarantee cash going to come from?

Still think you need to brush up on your Russki speak . . .

Key event

If the ECB does pull the plug then there could be turmoil in Cyprus next Tuesday, when the banks were scheduled to finally reopen.

And the deposit guarantee scheme which is meant to protect depositors in the event of a bank collapse could quickly be proved worthless.

As Frances Coppola (a former banker) has blogged about here, deposit guarantee schemes are only as good as the national government who stands behind them. And Cyprus does not appear to have the assets to hand to cover the deposits in its banking sector:

So, Coppola explains:

    It is time that depositors were told the truth. The lack of a common deposit insurance scheme in the Eurozone means that deposit insurance is a luxury available only to those countries that can afford it - which are also the countries that least need it. Everywhere else, it is a sham.

Potentially awful news for Cypriots, as well as thousands of ex-pats from the UK and beyond.

 

[Marley's Ghost (Imbiber of Spirits)]

ECB gives Cyprus until Monday

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

 

  The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

    Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find €6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse.

 

I suppose the threat of the banks all going tits up and consequently losing all your dosh makes the idea of a 6/10% "haircut" look almost appealing . . .

Still, on the bright side, at least it gets you out of the €uro . . . .     

Theoretically, we are covered by the bank guarantee scheme if the banks go tits...

Agreed.

Problem is: where's the guarantee cash going to come from?

Still think you need to brush up on your Russki speak . . .

Key event

If the ECB does pull the plug then there could be turmoil in Cyprus next Tuesday, when the banks were scheduled to finally reopen.

And the deposit guarantee scheme which is meant to protect depositors in the event of a bank collapse could quickly be proved worthless.

As Frances Coppola (a former banker) has blogged about here, deposit guarantee schemes are only as good as the national government who stands behind them. And Cyprus does not appear to have the assets to hand to cover the deposits in its banking sector:

So, Coppola explains:

    It is time that depositors were told the truth. The lack of a common deposit insurance scheme in the Eurozone means that deposit insurance is a luxury available only to those countries that can afford it - which are also the countries that least need it. Everywhere else, it is a sham.

Potentially awful news for Cypriots, as well as thousands of ex-pats from the UK and beyond.

 

I thought he was a film maker type chappie . . . .

[apc2010]

 

[Barman]

Eurozone officials are increasingly alarmed about the situation in Cyprus, according to the notes of a conference call seen by Reuters.

During the call, which took place last night, officials admitted they were "in a mess" as they discussed whether capital controls (limits on bank withdrawals and cash movements) could protect the country.

Cyprus didn't attend the call - another worrying sign - as other officials talked about the risk of the country quitting the eurozone.

Reuters reports:

    In detailed notes of the call seen by Reuters, one official described emotions as running "very high", making it difficult to come up with rational solutions, and referred to "open talk in regards of (Cyprus) leaving the euro zone".

    The call was among members of the Eurogroup Working Group, which consists of deputy finance ministers or senior treasury officials from the 17 euro zone countries as well as representatives from the European Central Bank and the European Commission. The group is chaired by Austria's Thomas Wieser.

    Cyprus decided not to take part in the call, a decision that several participants described as troubling and reflecting the wider confusion surrounding the island's predicament.

    "The (Cypriot) parliament is obviously too emotional and will not decide on anything, if Cyprus does not even feel that they can attend the call it is a big problem for us," the French representative said, according to the notes seen by Reuters. "We have never seen this."