Popular Posts
- ECUADOR: Judge Orders Jail For 3 Media Executives, Columnist...In Correa Libel Case.
- SERBIA / LIBYA : Are Serbian Mercenary Pilots Bombing Protestors In Tripoli?
- CZECH REPUBLIC: Attempts To Ban The Communist Party.
- COLOMBIA: Capturing The Beauty In Beauty Contests.
- URUGUAY: Prez. Mujica Popularity At Record High After 100 Days.
- COLOMBIA: FARC Abducts & Murders Provincial Governor.
- MEXICO: Narcos "Force Down" Police Helicopter In Michoacan.
- PUERTO RICO: The Enigma of Tourism.
- HUNGARY: IMF Talks End Abruptly With $20 Billion Euros At Stake; Big Forint Sell-off.
- VENEZUELA: Chavez Will Nationalize 11 U.S. Drilling Rigs.
31 January 2013
CYPRUS / EUROZONE / RUSSIA / IMF : Tiny Island Delivers Big Worries.
ANALYSIS
Some currency traders predict the euro will hit $1.40 vs the usd in 2013...before retreating.
The euro is currently hovering around the $1.36 level.
The Eurozone's troubles seem to be receding.
Until...the little island of Cyprus came along. Again.
It desperately needs a bailout.
At least...10 billion euros to mend its banking system...and 7.5 bn euros for operations and debts.
It has been begging for money since June last year.
But 17.5 billion euros almost equals its 18 billion GDP.
How could it ever repay the loans?
And...there's the nagging Russian problem.
Rich Russian nationals love to visit...and bank in Cyprus.
They may also be laundering their fortunes thru its very amenable banks.
Germany especially is reportedly uncomfortable with Moscow's close ties to Nicosia.
The Cyprus FinMin expects Russian investors will extend their 2.5 bn euro/$3.4 bn loan...due in 2016...to 2022.
http://uk.reuters.com/article/2013/01/31/uk-eurozone-cyprus-idUKBRE90U0C120130131