“Cyprus’s local-currency issuer rating was lowered to restricted default by Fitch Ratings yesterday after the nation completed an exchange of government bonds for longer-dated securities. The bond exchange is part of commitments under a 10 billion-euro ($13 billion) bailout that saved Cyprus’s financial sector from collapse in March. Under the rescue program, deposits above 100,000 euros are taxed after an initial plan with a levy on deposits of less than 100,000 euros was rejected by parliament. Banks using such bonds to obtain funding will have to tap their national central banks’ Emergency Liquidity Assistance programs.”
http://www.bloomberg.com/news/2013-06-29/ecb-suspends-cyprus-government-bonds-as-collateral.html
Related posts:
Tests Show 0.00% BAC, Retired Firefighter Arrested For DUI & Car Impounded Anyway
Slovenia Liquidates, Backstops Two Banks to Stave Off Cyprus Fate
Syrian jihadist rebels attack, kill 12 Alawite civilians
Zurich unveils 'sex boxes' for prostitutes
Top Treasury Official Sees No Widespread Criminal Bitcoin Use
Latin America demands answers from U.S. on spying
Snapchat's young users snap up stock — and want more IPOs
Chinese university fires outspoken economist amid crackdown on dissent
McCain blames Obama for U.S. losing credibility in the Middle East
Iceland Seen Threatened by Capital Flight From Its Own Citizens
Robot suit designed to aid the physically challenged and elderly gets global safety certificate
Mexican politician shot dead minutes after promising to crack down on violent crime
Gold rush 2013 style has Dubai scrambling
The criminal-justice system is bad at correcting, or learning from, its mistakes
Flurry of Bitcoin Venture Capital Deals Gives Way to Quiet