Skip to main content

Greek Economy Fallout

Cyprus has taken measures to cooperate with the Central Bank for
shielding the island's banking system against possible Greek economic
fallout, the Finance Ministry said on Saturday.

The ministry's statement came after Moody's rating agency downgraded
Cyprus's government bonds ratings by two notches to Baa3 from Baa1 on
Friday.

The rating agency has also downgraded Cyprus's short-term rating to
Prime-3 from Prime-2 and placed it on review for further possible
downgrade.

The ministry cited two bills pending in parliament providing for the
creation of a Financial Stability Fund and empowering the government
to intervene in bank recapitalization in case of a bank being unable
to cope on its own.

The European Banking Authority had estimated that the Cypriot banks
exposed to Greek sovereign debt will require a capital buffer worth of
3.6 billion euros (4.9 billion U.S. dollars), in order to increase
their core tier 1 ratio to 9 percent.

Cyprus's two largest lenders, the Cyprus Bank and the Marfin Popular
Bank, have announced that they could recapitalize by their own means.

The Finance Ministry statement renewed a call to political parties "to
approve the 2012 state budget along with the proposed fiscal measures
as a necessary step towards fiscal consolidation."

In putting the Cypriot sovereign credit to just one notch above
non-investment speculative grade and keeping a watch for further
downgrade, Moody's said its move was driven by the high likelihood
that the Cypriot banking system will require state support in 2012 as
a result of the large expected write-downs on its exposures to Greek
government bonds.

"This state support will have a significant negative impact on the
government's debt metrics," Moody's said.

Comments

Post a Comment

Popular posts from this blog

Buried Treasures in Bohol Philippines

Written by Joe Espiritu       Four persons died in a treasure hunting accident last week. They died for nothing. Many had lost their shirts in the venture, the propensity for Filipinos to get rich quick attribute to the treasure hunting mania. The sad part is that only the ignorant venture on the search, those in the know, being sure that nothing will come out of the effort would not think of investing money, time and effort – this time lives – in a fruitless enterprise.        There had been stories of people getting rich uncovering treasure troves in unlikely places. Most stories are false. Ancient graves of archeological and anthropological value had been desecrated by treasure hunters. They had found nothing. Those people may have struck it rich but not from some hidden riches. Contrary to what other people say, there are no buried treasures in Bohol . If there had been, they were unearthed years ago.         If one ...
Post a Comment
Read more

Obama is the richest man in the world

I hold you to the words you are writing. You blamed Bush for the balanced budget disappearing. I don't know if you are capable of holding a memory that happen yesterday. You have forgotten that Bush was a war President, two wars in his term; Katrina & Rita, three major hurricanes that destroyed Florida and the gulf coast, Annual fires ravaging California that dependent on Bush to declare those as disaster areas too. Then the Democrats protest any move by the Republican to reform the Fannie Mae and Freddi Mac because of policy created by Democrats on home buyers that had no income. Greenlining was opposed by Democrats. Bush fought the good wars, maintained the economy until Obama and his handlers created a hoax about worst economy, and unemployment in 5%. People like you believed his lies, about high debts in $500 billion and worst unemployment and depression since 1932!   In less than a year Obama committed $3 trillion debts, before his term is over projected to $27 trillion, ...
Post a Comment
Read more

JL Carbonfree Energy Co., Ltd

Dear Sir/Madam :   We have obtained address from Internet that you are in the market for wind turbines. We are specialized in manufacturing all kinds of wind turbines, blades and generators. Welcome to visit our website http://www.carbonfreeenergy.cn which includes our company profiles, history and more products. We are a professional manufacture of wind turbines, so we are confident that we can satisfy you with good quality and best price. Please send us more details and specifications about your order; we will be happy to give you details. We are looking forward to your specific inquiries.     JL CarbonFree Energy Co., Ltd Address: Room 1504, Unit 2, No.4416 Jiefang Road , Chaoyang District, Changchun , JiLin , China http://www.carbonfreeenergy.cn http://carbonfreeenergy.en.alibaba.com Skype: carbonfree988 E-mail:carbonfreeenergy@gmail.com               ...
Post a Comment
Read more