News / Europe

Eurozone Ministers Approve Cyprus Loan

Jorg Asmussen, left, European Central Bank Executive Board member, and Cyprus Finance Minister Harris Georgiades in Dublin Castle, Ireland, April 12, 2013.Jorg Asmussen, left, European Central Bank Executive Board member, and Cyprus Finance Minister Harris Georgiades in Dublin Castle, Ireland, April 12, 2013.
x
Jorg Asmussen, left, European Central Bank Executive Board member, and Cyprus Finance Minister Harris Georgiades in Dublin Castle, Ireland, April 12, 2013.
Jorg Asmussen, left, European Central Bank Executive Board member, and Cyprus Finance Minister Harris Georgiades in Dublin Castle, Ireland, April 12, 2013.
Selah Hennessy
Eurozone finance ministers on Friday formally approved the terms of a problematic Cyprus debt rescue. The bailout for Cyprus marks an important shift in the eurozone crisis, with bank depositors paying out to help fund the rescue.

The rescue deal is worth $13 billion. Under the deal's terms, Cyprus will be responsible for raising the remaining billions in the rescue package.

This week, questions were raised over just how many billions that will be.

Initially the overall package was gauged at around $22 billion. But documents leaked to the media this week showed the overall price tag could be as high as $30 billion.  

On Friday, eurozone ministers meeting in Dublin formally approved the rescue deal, without raising their own contribution to the package.

The deal is now ready for approval by member states and the first tranche of the loan - cash badly needed in Cyprus - could be ready by the middle of next month.

International lenders have estimated that the economy of Cyprus will contract by nine percent this year and almost four percent the year after.

Olli Rehn, the EU monetary affairs commissioner, said Friday the economy could shrink by as much as 15 percent this year alone.

"We are revising the growth forecast and of course there is plenty of uncertainty about the exact trajectory of economic growth in Cyprus," he said.

He said EU structural funds aimed at boosting euro economies may be brought forward to help Cyprus.

Cyprus is implementing spending cuts and banking sector reform to try to raise the funds it needs. The banking sector in Cyprus is about eight times the size of the economy.

Bank depositors have been forced to make their own contribution to the bailout, with a tax on accounts containing more than $130,000.  

Portugal and Ireland were also on the agenda at the two-day meeting in Dublin.

Ireland received a bailout in 2010 and the following year Portugal received its own bailout worth just over $100 billion.

On Friday, the ministers agreed to extend the bailout loans by seven years.

Jeroen Dijsselbloem, the Dutch finance minister and Eurogroup president, spoke at a press conference early in the day.

"The ministers of the eurogroup would like to take a definite and positive decision on this extension of the maturities of the loans for seven years, pending the decision of the ECOFIN colleagues this afternoon," he said.

The eurozone is to contribute just under $12 billion to the Cyprus bailout. Just over $1 billion will come from the International Monetary Fund.

You May Like

Australia Knights Prince Philip, Sparking National Outrage

Abbott's surprise reintroduction of knights and dames in the country's honors system last year drew criticism that he was out of touch with national sentiment More

SAG Award Boosts 'Birdman' Oscar Hopes

Individual acting Oscars appear to be sewn up: SAG awards went to artists who won Golden Globes: Julianne Moore, Eddie Redmayne, Patricia Arquette, J.K. Simmons More

Katy Perry Lights Way for Super Bowl's Girl Power Moment

Pop star's selection to headline US football championship's halftime show extends NFL's trend of selecting artists who appeal to younger viewers More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Zoo Animals Show Their Artistic Sidesi
X
June Soh
January 23, 2015 10:03 PM
The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid