Georgiades Says Cyprus Is Out of ‘Danger Zone’ With New PayoutJonathan Stearns
Cypriot Finance Minister Haris Georgiades said the country is out of the “danger zone” after the euro area endorsed another disbursement of emergency aid and Bank of Cyprus Pcl emerged from resolution.
Euro finance chiefs earlier today approved a 1.5 billion-euro ($2 billion) payout to Cyprus, the region’s second transfer under the Cypriot rescue program. Bank of Cyprus emerged from resolution in late July after imposing a deposit levy of 47.5 percent.
“We have exited the danger zone,” Georgiades said in an interview today in Vilnius, Lithuania, where he took part in a meeting with his euro-area counterparts. “We are in a phase of stabilization.”
Cyprus has battled to keep its 10 billion-euro rescue on track since winning the lifeline in return for pursuing a tighter budget and forcing losses on uninsured depositors in the two largest Cypriot banks. Bank of Cyprus absorbed the second-biggest lender, Cyprus Popular Bank Pcl.