– Corrects Bank Origin To Tanzania
FRANKFURT (MNI) – The Cypriot government has managed to push back
the threat of near-term insolvency thanks to the purchase of E240
million in government bonds by a bank in Tanzania, the German daily Die
Welt reports.
According to the newspaper, the bonds were initially to be repaid
by November 4, which would have left the Cypriot government insolvent
before year-end. However, the Federal Bank of the Middle East has
renewed the bonds, thus allowing the government to push back repayment,
Die Welt said.
As the Tanzanian financial institution seeking a banking license to
operation in Cyprus and likely to get it, the opposition is concerned.
“We hope that the banking license was not a condition for the government
bonds to be renewed,” opposition leader Averof Neophytou was quoted as
saying.
Heavy exposure to the Greek banking system, as well as severe
damage to Cyprus’ biggest power plant last year, has left the Cypriot
government with a huge financial burden and requesting assistance from a
number of sources, including Russia and the European bailout fund.
While Cyprus has managed to obtain some funds from Russia, a
decision regarding a European bailout is unlikely before next year, a
German Finance Ministry spokesperson said on Monday.
Speaking at a regular government press conference in Berlin,
ministry spokesperson Martin Kotthaus noted that talks with Cyprus were
progressing at a rather moderate speed, which means “a completion before
the year 2013 will likely be difficult.”
— Frankfurt bureau: +49 69 720 142; email: twailoo@mni-news.com
[TOPICS: MT$$$$,M$X$$$,M$G$$$,MFGBU$,MGX$$$,MFX$$$]
