Post date: Mar 23, 2013 3:34:30 PM
Cypriot Finance Minister Michael Sarris says "significant progress" has been made in talks with troika officials.
NICOSIA, CYPRUS (MARCH 23, 2013)(REUTERS) - The Cypriot finance minister told reporters on Saturday (March 23) that "significant progress" had been made in talks with troika officials as the country races to raise the funds for a bailout and avert financial collapse.
Michael Sarris confirmed that discussions with officials from the European Union,European Central Bank and International Monetary Fund were centered on a possible levy of around 25 percent on holdings of over 100,000 euros at Bank ofCyprus.The details were still being worked out, he said.
"We had a first meeting this morning with the troika on the basis of a paper we had prepared, outlining in some details a comprehensive proposal on our side. The majority of the issues on that paper did not call for any further work but there were two, three issues, which you will allow me not to go to any detail, call for greater quantification, greater analysis, so that all parties can be absolutely sure that they, we, understand the same thing. You will appreciate these are things that have not really been done before, new experiences for everybody. We have a number of experts that are working from the private sector, at the central bank, at the ministry of finance, trying to iron out these details," he said.
Cyprus's bid to avert financial collapse will go down to the wire after the island said it would hold a crucial sitting of parliament only after finance ministers of the 17-nation euro zone meet on Sunday (March 24).
"There has been significant progress towards a solution, at least on the level of the troika, which will make its own suggestions to the Eurogroup. During the discussions, certain issues arose that will require further study," Sarris said.
"We have to be very precise in order to safeguard the financial system, so that the banks can open on Tuesday with a very clear picture. We want everything to be done in a way that everything will be very clear," he added.
He said a number of issues were still outstanding, but that a package could be ready "late this afternoon or early evening" for approval by parliament.
The president of the parliamentary financial committee also said he was hopeful.
"I am hoping that a solution is near because we need to reach a solution as quickly as possible for the safeguarding of the interests of the economy of Cyprus," Nikolas Papadopulos said, as he arrived for the meeting with the troika inspectors.
Cyprus faces a Monday (March 25) deadline to clinch a 10 billion euro ($13 billion) bailout from the European Union or the European Central Bank says it will cut off emergency funding to the country's stricken banks, spelling certain collapse and potentially pushing the island out of Europe's single currency.