Cyprus News Agency: News in English, 12-02-09

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From: The Cyprus News Agency at <http://www.cyna.org.cy>

CONTENTS

[01] Spokesman calls on Eroglu to abandon negative stance

[02] Fitch downgrades two Cypriot banks covered bonds

[01] Spokesman calls on Eroglu to abandon negative stance

Stephanos Stephanou was commenting on statements made by Dervis Eroglu alleging that there is no incentive for the Greek Cypriot side to move towards a solution of the Cyprus problem after July 1. Eroglu also claimed that if Cyprus President Demetris Christofias runs again for the presidency in 2013 then he will not be able to make any concessions.

The Spokesman said that Eroglu always makes arbitrary statements just to support the positions of the Turkish Cypriot side.

He accused the Turkish side of trying to set a timetable for the solution of the Cyprus problem based on the time during which Cyprus will exercise the EU presidency in the second semester of 2012.

This is something that cannot happen, he noted, making it clear that Cyprus EU presidency and the negotiations are two different things.

He accused Eroglu of trying to cover his own negative stance and his own backtracking on convergences achieved at the negotiating table.

Stephanou said that Eroglous stance has not allowed for progress on the Cyprus issue.

He also accused Eroglou of trying to justify his position on the establishment of two separate states in Cyprus which violates UN resolutions.

Stephanou said that if the Turkish side had been working towards a solution of a bizonal, bicommunal federation, as outlined in UN resolutions and especially resolution 1251, then things would have been much better.

``Instead of blaming the Greek Cypriot side, it would be better for Eroglu to come to the negotiating table with goodwill, display consistency with UN resolutions and commitments undertaken before the Secretary General in order to create the conditions for progress in efforts to resolve the Cyprus problem,`` he added.

[02] Fitch downgrades two Cypriot banks covered bonds

Fitch announced it maintained Marfin`s programme one bonds to rating watch negative (RWN), while it removed Marfin programme two bonds from RWN. The agency also announced it maintained Bank of Cyprus` covered bonds under RWN.

According to Fitch, the outstanding Cypriot covered bonds represent EURO 4.2 billion of Fitch-rated debt on aggregate, including EURO 2 billion of bonds issued by Marfin under Programme I (Greek mortgage pool), EURO 1.5 bilion of covered bonds issued by Marfin under Programme II (Cypriot mortgage pool) and EUR700m of covered bonds issued by BoC (Greek mortgage pool).

The rating actions follow the downgrade of Cyprus` sovereign rating to `BBB-/ Negative` from `BBB/RWN` on 27 January 2012, and the subsequent downgrades of Marfin and BoC`s` Long-Term Issuer Default Ratings (IDR) to `BB+/Negative` on 2 February 2012.

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