Loan from Russia included in Plan B proposal for Cyprus
By The Associated Press
Published: Wednesday, March 20, 2013, 9:42 p.m.
NICOSIA, Cyprus — Searching for a way out of a crippling financial crisis, officials in Cyprus on Wednesday pursued a bailout strategy that could include a loan from Russia in exchange for natural gas leases and selling off assets from its most troubled banks.
Cyprus needs to come up with $7.5 billion on its own in order to secure $12.9 billion in rescue loans from international creditors. But the country's first plan to seize up to 10 percent of people's bank accounts failed miserably. Now officials are trying to limit the amount of money they need to take from customers' deposits.
The new “Plan B” could be voted on as early as Thursday, three top government officials said.
The latest move came a day after lawmakers voted overwhelmingly against the earlier plan — a rejection that threw Cyprus' entire bailout into question. That raised the possibility the country's banks could collapse, the government would be unable to pay its bills and Cyprus could be forced out of the euro.
That could roil global financial markets as well as endanger deposits in the country even further.
The “Plan B” was described by three top government officials, who spoke on condition of anonymity because details of the proposal were not being released until party officials had a chance to review them at a meeting Thursday morning.
The package includes a proposal to restructure Cyprus' heavily indebted second-largest lender, Laiki. The idea would be to isolate the bank's bad assets, which would be taken over by the government, from its good assets, which could be sold off to raise money. That strategy could also be applied to the country's biggest lender, Bank of Cyprus.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Hunt for missing jet widens to distant waters
- Investigation into missing Malaysia flight centers on 2 men who boarded with stolen passports
- Ukraine’s Crimea seeks to become independent state
- Ukraine control of bases erodes
- Quebec legislature dissolved; election set
- Crimean vote called illegal
- Syrian military seizes rebel town near Lebanon border
- Cuba allows phone access to some email
- Autopsy details sicken Pistorius