Cyprus president slams bailout terms

Cypriot President Nicos Anastasiades has strongly criticized the terms of an international debt bailout in a letter to eurozone leaders, warning that the country might not be able to reach the current required targets.

In the leaked letter Anastasiades sent last week, he accused the eurozone leaders of treating Cyprus unfairly, saying the current terms has harmed the countryâ„¢s economy and banking system even more than expected.

“An alternative, longer-term, downsizing of the banking system away from publicity and without bank runs was a credible alternative that would not have produced such a deep recession and loss of confidence in the banking system,” said Anastasiades.

In return for a 10 billion-euro bailout (USD13 billion), the international troika of lenders demanded the restructuring and partial merger of Cyprusâ„¢ two largest banks, the Bank of Cyrus and Laiki bank, which account for 80 percent of the domestic banking sector.

In addition, it required the seizure of funds on deposits over 100,000 euros in Bank of Cyprus.

“No distinction was made between long-term deposits earning high returns and money flowing through current accounts, such as firms’ working capital,” said Anastasiades.

“This amounted to a significant loss of working capital for businesses,” he added.

The president also criticized that the imposed capital controls were “seriously hampering the conduct of business.”

“Rather than creating confidence in the banking system they are eroding it by the day,” said Anastasiades.

According to The Financial Times, the eurozone finance ministers are to discuss Anastasiadesâ„¢ letter at their next scheduled meeting on June 20.

CAH/PR

This article originally appeared on: Press TV