Tuesday, March 26, 2013

The EU - Cyprus Crisis -- News Updates March 26, 2013

Could Spain And Italy Be Next? Fears That Cyprus-Style Raid On Savings Accounts Will Be Used To Bail Out Struggling Economies -- Daily Mail

* Investors jittery that both countries could need another EU rescue deal
* Spain in recession, Italy struggling to form government to clear huge debt
* EU finance chief suggested Cyprus could be blueprint for future bailouts
* Savers on island with more than £85k could lose up to 40% of their money
* ALL banks in Cyprus to stay closed until Thursday to stop run on deposits
* Cyprus will not to need to vote on deal because bank law already in place
* But Germany may have to hold vote before agreement can take effect

British savers in Spain and Italy could be next to suffer a Cyprus-style raid on bank accounts if those struggling economies fail again, it was warned today.

Investors have reacted nervously in the two countries after it emerged the Cypriot rescue deal could be used as a template for other bail-outs.

Both are seen as the most likely contenders for any future bailouts.

Spain is in recession, having suffered badly from souring property loans, and data points to a further deterioration that will hamper Madrid's efforts to rein in public finances and keep government borrowing under control.

Read more ....

More News On The EU - Cyprus Crisis

Cyprus crisis: Bank workers and students protest, as UK strives for Laiki deal - as it happened -- The Guardian
Cyprus bail-out: live. -- The Telegraph

Eurozone Chief: Personal savings accounts in Spain, Italy will be raided to save euro -- The Telegraph
Banks in Cyprus Remain Closed After Bailout -- Voice of America
Bank of Cyprus Uninsured Deposit Holders Face 40% Haircut-Central Banker -- Wall Street Journal
Cyprus businesses feeling strain as Cyprus bank shutdown enters second week
-- Washington Post
">Cyprus students hold protest rally as banks stay shut -- Reuters
Cyprus banks remain closed to prevent run on deposits -- The Guardian
Cyprus to bring in weekly cash curbs. -- BBC
Head of Cyprus’s Biggest Bank Resigns -- New York Times

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