Cyprus Problem | Doubt Whether South’s President Can Deliver

Cyprus Problem | Doubt Whether South's President Can DeliverCyprus Problem | Doubt Whether South’s President Can Deliver

Chaos reigns in the south as the new President has only just discovered that it is doubtful whether he can implement the bailout terms he’d negotiated with the EU. There was to be a meeting with MPs today to ratify the plan to remove up to 10% of saver deposits as an emergency tax but this has been cancelled. It is expected that the meeting will now take place on Monday and that banks will be persuaded to remain closed on Tuesday during the period of uncertainty. At the moment the President looks unlikely to gain a majority of MPs supporting the tax move and that leaves the government in chaos.

If the plan fails and the tax cannot be applied then there are fears that when the banks open on Wednesday then there will be a rush to remove funds just in case the tax plan turns out to be the only possibility of a bailout. Banks without money is unimaginable especially when you add that to a government without enough to pay wages. Mind you, I’m sure there are many countries outside the EU block ready to lend the south the money they need, at a price…

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