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Cyprus calls for ‘complete overhaul’ of €10bn bailout

  • 19/06/2013
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The Cypriot president has asked eurozone officials to overhaul the country's €10bn bailout plan due to its unmanageable impact on the Cypriot economy, according to reports.

President Nicos Anastasiades wrote to eurozone leaders last week claiming parts of the deal, agreed in March, were implemented “without careful preparation”, according to the Financial Times.

The bailout forced the closure of Laiki, the country’s second largest bank, and a major restructuring of Bank of Cyprus, the country’s largest financial institution.

But Anastasiades said the onerous restructuring process was making it difficult for Bank of Cyprus to operate on a day-to-day basis, and called for an unwinding of the merger of Laiki’s best assets into BoC.

“The success of the programme approved by the eurogroup and the troika [of international lenders] depends upon the emergence of a strong and viable BoC,” Mr Anastasiades said, according to the newspaper.

“[The] economy is driven into a deep recession, leading to a further rise in unemployment and making fiscal consolidation all the more difficult.”

“I urge you to review the possibilities in order to determine a viable prospect for Cyprus and its people.”

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