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FINANCE > New EU leader Cyprus urges 'fair deal' eurozone debt-sharing

NICOSIA - Agence France-Presse

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Cypriot President Demitris Christofias (L) welcomes European Commission President Jose Manuel Barroso (R) at the Presidential Palace in Nicosia on July 6, 2012 after experts from the European Commission, the European Central Bank and the International Monetary Fund arrived in Cyprus on July 3, to look into the eurozone member's request for financial aid. AFP photo

Cypriot President Demitris Christofias (L) welcomes European Commission President Jose Manuel Barroso (R) at the Presidential Palace in Nicosia on July 6, 2012 after experts from the European Commission, the European Central Bank and the International Monetary Fund arrived in Cyprus on July 3, to look into the eurozone member's request for financial aid. AFP photo

Financially troubled Cyprus, which this week took over the EU helm, complained on Friday of falling "unfair" victim to Europe's debt crisis and urged eurozone nations to share debt according to size.
 
Speaking days after applying for an EU-IMF bailout, Finance Minister Vassos Shiarly complained that his tiny island nation went into the red only after paying "a very heavy price" to enable Greece to write off more than 100 billion euros of debt owed to private banks.
 
The March "haircut" deal -- known as PSI or private sector involvement -- was negotiated in months of talks among private, public and global players to slice around 50 percent off monies owed by Greece to the banks, to lighten its huge burden of debt.
 
Because Cypriot banks held massive amounts of Greek debt, Cyprus lost 4.2 billion euros, amounting to 24 percent of its gross national product, Shiarly said.
 
"This was not a fair way to deal with it," the minister told a news conference.
 
"It was a European problem," he added. "I believe we should have shared that loss fairly on a level playing field." Given that Cyprus accounts for 0.2 percent of the total economies of the 17 nations sharing the euro, the country would have lost only 200 million euros under a fair share-out, amounting to "petty cash," he said.
 
The minister said he would likely raise this issue in talks to negotiate an EU-IMF loan.

July/06/2012

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DAVE IMPALER

7/9/2012 1:37:34 PM

"Cypriot President Demitris Christofias" Hurriyet got it right

Emanuel Zahra

7/6/2012 9:40:46 PM

Let's not rush to conclusions, whilst I agree that Greece and Cyprus have to carry their responsibility with regards to debt payback, it is very important to understand that many of the "rich hardworking" European Countries benefited hugely from the "overspending" of the PIGS (Portugal, Italy, Greece, Spain) and to a certain extent of Cyprus. What one has to appreciate is that if one of these countries "fail", the cost will be very high for all of Europe and to the World and that includes Turkey

KıbrıslıTürk

7/6/2012 3:58:47 PM

From day ONE, Greek Cypriots started to cry for money already? Turkish Cypriots are suffering last 50 years. These Byzantines Greek Cypriots think they are clever and all others are stupid. No one ask Nationalist Greek Cyprus to invest all their money in to Greece. I hope EU will stand firm, Greeks wants to borrow money but they got no intention paying back. All you got to look at Greece.

Chris Green

7/6/2012 2:04:55 PM

T"hey sow the wind and reap the whirlwind. The stalk has no head; it will produce no flour. Were it to yield grain, foreigners would swallow it up." Hosea 8:7. The EU took Greece into the EEC in 1981 and we have seen rather clearly the costly error and disasterous 'harvest' this has produced. It has also been acknowledged that south Cyprus too should not have been 'rewarded' with EU membership after they misled the EU over the Annan Plan. Another failed harvest shall surely ensue!

mistique holland

7/6/2012 1:55:18 PM

@Red Tail, what do you mean by "why should the GERMANS work hard untill they are 70"????Do you forget all the other Europeans who ALSO have to work untill that age for Greece like The Netherlands, Belgium, France, etc. WHY do you only mention the Germans? ALL US EUROPEANS pay the debt of Greece, me or my husband can't stop working at 65 anymore because of them, our pensions are mostly gone and we are NO Germans!Turkey should never ever join the EU. You have NO say of your own country or people.

Red Tail

7/6/2012 1:04:26 PM

"Fair deal"? The only that is fair is if you pay back money you have borrowed. Everything else is dishonest. Why should the Germans work hard until they are 70, in order to pay for the early pensions in Greece?

mistique holland

7/6/2012 12:46:38 PM

Typicall that he allready starts wining about the EU and fair sharing!It is THEM who took our pension money in the Netherlands, the Greek, and it were the Greek who assaulted Dutch tourists and boycotted Dutch produce but took biljons of euro"s of the Dutch people. And he is talking about fair!!Turkish Cyprus has none of these problems because Turkey is a growing economy and knows how to do business, but Greece spend all their money and now OURS and still complain. @Dutch Turk, you are SO RIGHT.

DutchTurk JANICAR

7/6/2012 12:33:05 PM

Fair deal, yes agree totally. PAY EVERY PENNY YOUR BORROWED BACK !! Even if it would take 50 years. Or does he want to point out the opposite? Well that is not fair.
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