Levant News – a Tanzanian Bank saved Cyprus from insolvency thanks to their purchase of €240m worth of Cyprus Government Bonds. These bonds were due to be paid on 4th November 2012 and in doing so would have left the RoC insolvent, according to the German daily Die Welt. This purchase has allowed the government to push back the payment date. That was lucky, spelt D-E-A-L, and of course nothing to do with the fact that the Federal Bank of the Middle East is seeking a license to trade in the south, and is likely to get it.
The instability of the south’s financial situation means that it could be pushed into similar deals, with or without merit, in order to stave off insolvency at a time when they have the EU Presidency. Russian and EU loans are proving difficult to obtain quickly and until then the south is struggling to stay afloat until it starts to benefit from all the energy money it expects to be getting – if it hasn’t cashed it all in by then.
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