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19 Mar 2013
Forex Flash: Take two, European officials likely to pass revised plan in Cyprus – UBS
FXstreet.com (Barcelona) - Media reports suggest the Cypriot government is currently redesigning how losses will be distributed amongst depositors in Cypriot banks, such that small depositors shoulder less of the burden (or perhaps escape entirely). The government is up against the clock though with parliamentary debate due to begin at 16:00 GMT on Tuesday (after several previous postponements).
According to Research Analyst Geoffrey Yu at UBS, “Eurozone officials are unlikely to stand in the way of a revised plan, provided the same total of €5.8B worth of deposits are seized. That was the clear message from the statement issued after Monday’s late-night teleconference call between Eurozone finance ministers.”
It seems finance ministers are also trying to distance themselves from the weekend agreement. Monday night’s statement declared that “The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below €100.000.” - although we note that this message was absent from the statement released over the weekend.
According to Research Analyst Geoffrey Yu at UBS, “Eurozone officials are unlikely to stand in the way of a revised plan, provided the same total of €5.8B worth of deposits are seized. That was the clear message from the statement issued after Monday’s late-night teleconference call between Eurozone finance ministers.”
It seems finance ministers are also trying to distance themselves from the weekend agreement. Monday night’s statement declared that “The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below €100.000.” - although we note that this message was absent from the statement released over the weekend.