Cyprus Bailout | South’s Central Bank Prevents Bank Probe

Cyprus Bailout | South's Central Bank Prevents Bank ProbeCyprus Bailout | South’s Central Bank Prevents Bank Probe

Two major events seem to be related to the south’s Central Bank preventing the current right-wing government from investigating irregularities at the two banks involved in the need for a €10bn bailout. The first event was the Central Bank’s reluctance, shall we say, to supply the data necessary to investigate what happened in the period leading up to the closing of banks. The parliamentary committee responsible for the investigation suspended its investigation citing the lack of co-operation of the Central Bank as the reason.

The second event was the sacking of the Central Bank’s deputy, an alleged illegal Christofias appointment. The deputy, Spyros Stavrinakis, was the Central Bank employee who was responsible for supplying the incomplete data.

These events do not instil confidence in the south’s banking system and maybe give a clue as to why the system collapsed last month. Not their fault, of course.

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