31 January 2013

CYPRUS / EUROZONE / RUSSIA / IMF : Tiny Island Delivers Big Worries.

       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.