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THE HOUSE OF Representatives in Cyprus is to vote on nine pieces of legislation prepared to protect the country’s financial services system and avoid a run on banks when they open next week.
According to official news agency CNA, parliament asked for more time to study the lengthy bills and will meet at 8am (Irish time). The proposals include the creation of a investment solidarity fund which would bundle state assets, including gas reserves. The country’s second-largest bank Laiki is also to be restructured as part of the so-called ‘Plan B’.
The crisis discussions come after lawmakers rejected an EU/IMF rescue package, worth €10 billion, which included a controversial levy on bank savings.
As the session gets underway in Nicosia, Finance Minister Michalis Sarris has been told by Moscow that the only assistance available to Cyprus is the possible extension of an existing loan of €2.5 billion.
Sarris held meetings with Russian officials over the past 48 hours but he has now returned to Cyprus. His counterpart in the Kremlin, Anton Siluavnov, told local news agencies that the country’s investors “showed no interest” in Sarris’s proposals.
Late last night, credit rating agency Standard & Poor’s lowered its long-term sovereign credit rating for the nation from CCC+ to CCC with a negative outlook.
In a statement it said that it believes the risks of default are rising. It explained: “the Cypriot parliament has rejected a proposed financial stability levy, a key financing item upon which EU-International Monetary Fund economic assistance was predicated.”
The European Central Bank has set a Monday deadline for parliament to secure a plan before it pulls emergency liquidity assistance, which would likely cause a default and bank collapse.
Anti-bailout protests took place outside government buildings last night. There were some clashes with police reported. Anger among citizens is rising as the banking crisis impacts their daily lives. Queues for bank machines grew and grew yesterday as financial institutions imposed a €260 limit on ATM withdrawals in order to cope with high demand. Shops and other retail outlets are refusing cheques and credit cards.
-Additional reporting by AFP
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They should bring back the Back to Education grant
FF to abstain on budget vote will need Lowry to get it through ! Now is John Deasy chance to get rid of Kenny vote against general election quick ??
Heard him during the week saying he won’t vote against it
I’m comfortable earning a middle income please leave it like that and give the money to those struggling. To much vote wanting here
Pension in 2007 budget €209. It will probably be nearly €239 by 2017. While I don’t begrudge anyone that worked hard all their life a pleasant retirement I can assure you I’m no where near €30 better off.
FG re alignment where they look at the number of years.you contributed for will keep this in check. Wrongly if course as those who never worked won’t be impacted
@lavbeer: We should have the same system as America where your pension is based on your contributions. In Ireland especially for females who take time out to have children but work the rest of their lives could end up getting less than someone who decides not to work – how can that be fair. The difference between contributory and non contributory is a joke.
Here a question I don’t know the answer to. My mother worked in the civil service in the early 70′s. After she got married she like thousands of other women was forced to give up her job. Not only did she loose her civil service pension but her old age pension is cut too as a result. Has anyone ever taken the government to task over this matter?
I lost you when you said same system as America. They are not a social stage and I’m proud to say we offer all citizens a basic life at the very least. And I’m happy to pay my tax towards that.
I think she might have gotten a marriage gratuity, how that affects old age pension I don’t know.
Totally agree with you. The two groups that suffered least during the recession and whose actual spending power increased due to the cost reductions and deflation. Maybe we could actually stop buying votes and adjust things for the future? With only 40% or so of people paying all the income tax in this country, it is time to widen the tax Base and to give something back to those that have shouldered the burden of the recession, people with jobs that are paying tax!
Am I reading that right, social welfare is increasing for recipients by €20 a week? As a “squeezed middle” family, looks like we’d be lucky to see an increase of €20 a month. Yes, we might have more incoming than those on social welfare, but my outgoings are enormous. The costs of working, commuting, childcare in our joint income household leaves nothing at the end of each month. I would love €20 extra a week to spend on entertainment or a meal out, after a tough week working. Lucky them. Sure they probably need it more than we do after their tough week.
You read it wrong.
That was the 2007 budget
@CazzoA: this is about a FF budget in 2007, wait til tuesday for this decades one.
Ah, I should read properly and jump off the soapbox. Will save my ranting for budget day. A nice chunk off USC and some childcare tax credits would do nicely.
And an equivalent for those of us without children.
Wish they wouldn’t touch tax and improve healthcare system.
I’d say your disposable income could be less than someone on social welfare as you no doubt have bills to pay like insurance, medical and mortgage, etc…
You didn’t read it at all…instead jumped straight to the comments section
Budget 2007 bought the election nothing else.
Brisn Clown should be in jail for selling us down the river. This useless character should have his pension taken away, we keep rewarding failure handsomely in Ireland. This has got to stop.
So let me get this straight, earning <€4,004 is 0% ,BUT €0 – €10,036 has a 2% charge. Hope the poor hoors in the lowest bracket have a box to tick!
Well spotted. But shur this country in all about box ticking and loopholes!!!
That gif had given me an overwhelming urge to watch Wayne’s world once again.
Let’s make sure our politicians get their €125 pw rise and leave the pensioners carers etc. wait until next year to get their paltry (not modest) €5
Should bring back health levy for dental & optical we pay enough tax & prsi to at least get something out of it.. I
Cowen on TV the other day, at Bobby Molloy funeral.
Did not look well. But that’s what heavy drinking does.
For all the bad choices he made for the country, he has to escape reality somehow. Has spent his life waiting to have
“a few pints”.
MK.
Buying the Social welfare vote again with a 12 % increase This budget will be a joke just more money for the long term social grabbers. I have no issue with a helping hand but when holidays and cars are bought with social money we pay for …….
have your say