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Island under the Troika microscope

The Island will be put under the microscope by members of the Troika delegation who arrived in Cyprus yesterday for a fact-finding mission that is expected to play a crucial role in Cyprus’ EU bailout application.

Cyprus: Troika EU Bailout application
THE TROIKA delegation, which is made up of some thirty representatives from the European Commission, the European Central Bank and International Monetary Fund, will evaluate the Cypriot banking sector’s portfolios as well as its capital requirements.

The delegation is expected to enter into three days of discussions with the Island’s government and the banking authorities starting today; it will also consult with civil service officials, political parties and trade unions.

Reports suggest that the team’s findings will help to decide the final amount and conditions attached to an EU rescue of the Cypriot economy.

Last week Cyprus became the fifth Eurozone country to seek an EU bailout after the Island’s banking sector suffered huge losses as a result of the writedown on their Greek government bond holdings. The banks also have sizeable private loan portfolios in crisis-hit Greece.

Frozen out of the of the international debt markets, Cyprus turned to Russia last year rather than the European Union. The Russian government lent the Cypriot government €2.5 billion at a below-market rate of 4.5 percent.

Meanwhile, the Island’s government has continued efforts to secure a bilateral loan from a ‘friendly state’.

Commerce Minister Neoclis Sylikiotis announced that some expression of interest has come from China regarding a partial cash injection or an outright takeover of the struggling Cyprus Popular Bank.

Mr Sylikiotis and the Cyprus Popular Bank CEO, Dr Michalis Sarris, travelled to China last week in a last ditch attempt to secure investment into the debt-laden bank or a bilateral state loan that would fend off the Island’s application for a European bailout.

Readers' comments

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  • Adrian says:

    The Troika is going to talk to The unions, the banks, the civil servants. As long as they don’t believe everything that they hear without checking because they are all in the same “club”.

    As for the “loan” from the Russians where did it go? And how much gas and oil went with it? I hope the EU turn over every stone, after all Cyprus holds the Presidency and should be squeaky clean.

  • Costas Apacket says:

    There are many layers of the onion to remove before you reach the rotten core.

    Let’s hope the tears are worth it for both the Troika and for the rest of us.

    In the meantime the Government’s ‘Del Boy’ antics continue in the background with ‘Trigger Sylikiotis’ acting as the chief dodgy geezer.

  • Gavin Jones says:

    Amongst all the various ‘nasties’ that they’re likely to uncover, I trust that the Troika will be able to minutely catalogue the extent not only of the non-performing (don’t you just love that euphemism for ‘dodgy’ or ‘doubtful’!) Cypriot banks’ loans of €23 billion to Greek companies and individuals but also those to Cypriot developers which allegedly run into €6 billion or more.

    Should be interesting.

  • Clive says:

    I wonder if the Cyprus Government representatives will be made to swear to tell the truth, the whole truth and nothing but the truth.

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