Cyprus News | South Cyprus is Having Money Problems

Cyprus News | South Cyprus is Having Money Problems

UK regulators have cracked down on Cypriot banks because of fears of further exposure to euro zone problems. The regulators are pushing two of Cyprus’s top banks to alter the legal structure of their UK based business to make them subject to greater oversight. Bank of Cyprus has restructured its British arm, while Cyprus Popular Bank is in the process of making changes. Put simply, UK are scared they might have to pick up the bill for the south’s failure to secure a troika loan.

Fitch Credit Rating Agency has downgraded Cyprus’s rating further into junk, BB-, and has warned that further cuts are likely. All this is also based on Cyprus seeming to be unable to agree the troika deal. For those who do not know what this much mentioned group is, it’s representatives from three organisations: European Union, European Central Bank, and International Monetary Fund. Each a very powerful organisation on its own so together they have a very powerful influence.

The latest news is that instead of accepting the troika’s conditions for issuing the loan, the Greek Cypriot government decided to set their own conditions. Can you imagine going into a bank and expecting them to accept your conditions for giving you money? Perhaps they feel that the threat that they might, without the same questioning, accept Russia’s conditions for a loan is enough to make the troika give them the money without question?

Print Friendly, PDF & Email

Comments are closed.