ECONOMIC AND MONETARY AFFAIRS – Eurogroup asks for Cyprus audit in pictures
ECONOMIC AND MONETARY AFFAIRS – Eurogroup asks for Cyprus audit
The Eurogroup didn’t discuss the “technicalities” of a rescue for Cyprus, focusing mostly on concerns over money laundering on the island, Mr Dijsselbloem said on Monday as he chaired his first meeting of eurozone Finance Ministers after becoming President of the Eurogroup in January. A bailout programme, he stressed, would ensure “financial stability.” European Finance Ministers, sources such as ANT1, Ethnos, Público and The Guardian stress, insisted that Cyprus allow private investigators to check the island’s banks for breaches of money-laundering rules ahead of a €17bn rescue deal. There is, according to ANT1, an agreement on the need for an independent investigation into claims of money laundering by Cyprus, and the Troika and the Cypriot government now have one week to conclude the appointment of an auditor. “It is a necessary condition that Cyprus complies with the money-laundering rules of the EU before we move to discuss the terms of a bailout,” EC VP Rehn is quoted as saying by The Guardian. “We are working on a solution that aims to satisfy the need for financial sustainability and a comprehensive solution that involves the restructuring and re-financing of the banking sector.” “The aim is to find a common solution for Cyprus largely based on the principles and concepts of the Spanish banking sector’s reform programme”, Mr Rehn added in an interview with Helsingin Sanomat. Reporting that the eurozone Finance Ministers declined to rule out that some depositors in Cypriot banks would incur losses as part of an international bailout for the island, The Wall Street Journal highlights that not fully compensating depositors would actually be an unprecedented step in the eurozone which would risk upsetting the relative calm the currency bloc has enjoyed in recent months. A final decision on Cyprus’ aid request will only be made in March after the Cypriot elections, Austrian and German sources report.
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- Cyprus’ banks to get money-laundering check before bailout (guardian.co.uk)
- Cyprus must tackle money laundering, banks for aid: Eurozone (thenewstribe.com)
- Ministers look to March for Cyprus bailout (euobserver.com)
- To Get a Bailout, Cyprus Needs to Launder Its Reputation – Bloomberg (bloomberg.com)