Cyprus News Agency: News in English, 13-03-29

Cyprus News Agency: News in English Directory - Previous Article - Next Article

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

CONTENTS

[01] Government mandate for banking sector's investigating committee

[02] Kasoulides: Majority of foreign businesses wish to remain in Cyprus

[03] Hezbollah operative receives four-year sentence

[04] Banks in Cyprus reopened without any trouble

[05] Fitch downgrades banks' covered bond ratings

[01] Government mandate for banking sector's investigating committee

Former President of the Supreme Court Giorgos Pikis, and former Supreme Court members Panagiotis Kallis and Yiannakis Constantinides, will investigate issues ranging from the withdrawal of HSBC bank from Cyprus Popular Bank back in 2006, the purchase of Greek bonds by Cypriot banks, the period before the decision of an EU Summit for the restructuring of the Greek public debt, the commissioning of US investment consultancy firm, Pimco, to carry out a due diligence review in the Cypriot banking sector, as well as the conditions under which the Central Bank of Cyprus agreed to the provision of Emergency Liquidity Assistance by the European Central Bank to the Cypriot banks.

The mandate extends all the way to the salaries and bonuses of the Banking executives and Board members, the internal audit process and the risk assessment committees.

[02] Kasoulides: Majority of foreign businesses wish to remain in Cyprus

Speaking on Thursday at an international press briefing, at the Ministry of Foreign Affairs and replying to a question Kasoulides said that Cypriot businessmen who have contacted their colleagues not only from Russia but from other European countries have said that in their overwhelming majority they want to stay and continue their operations.

He pointed out that apart from the fact that Cyprus was a financial services centre, businesses chose to use the country for their operations also because of the good business environment it provides and its excellent legal and judicial system.

[03] Hezbollah operative receives four-year sentence

Twenty-four year-old Hossam Taleb Yaacoub had been arrested in the summer of 2012, after the police received information on a plot to perform a terrorist act in Cyprus against Israeli interests. He had pleaded not guilty on all counts but admitted he was a member of Hezbollah.

The court heard on Thursday mitigating pleas and handed down a sentence of four years on each one of two of the charges, namely participation in and committing a crime, deciding they would be served at the same time and would include the time the prisoner has already served under detention, that is to say since his arrest on July 7, 2012.

[04] Banks in Cyprus reopened without any trouble

Banks operated on Thursday from 1200 to 1800 Cyprus time (1000-1600 GMT), adjusting their usual working hours, in order to be ready to serve customers that had no access to banks since March 15. The Police implemented special security measures in cooperation with banking institutions to safeguard the process, while staying discreet.

According to an announcement by the Cyprus Union of Bank Employees (ETYK), the first day since the reopening of the banks run smoothly and without any problems. ETYK congratulated bank employees for performing in a "remarkably professional manner", while praising customers for remaining composed.

[05] Fitch downgrades banks' covered bond ratings

Fitch maintained the bank`s covered bonds on Rating Watch negative "as a result of the current banking sector instability, the uncertainty surrounding the recapitalisation terms of BOC and the transfer of CPB`s cover assets and liabilities to BOC."

"The RWN also reflects the negative implications of a potential recession on the domestic economy and on the quality the banks` the residential mortgage portfolios, which would lower the recovery prospects in the event of a covered bonds default.

Cyprus News Agency: News in English Directory - Previous Article - Next Article