Belfast Telegraph

Thursday 25 December 2014

Cyprus deal talks on knife-edge

Cypriot politicians vote on key bills aimed at securing a broader bailout package (AP/Petros Karadjias)
Cypriot politicians vote on key bills aimed at securing a broader bailout package (AP/Petros Karadjias)

British savers and companies are facing a nervous wait with negotiations over a bailout deal for Cyprus on a knife-edge.

The island nation is expected to go bankrupt within days unless it can raise almost six billion euro (£5 billion) to qualify for a 10 billion euro (£8.4 billion) rescue package from other single currency members and the IMF.

There was speculation on Saturday night that bank deposits over 100,000 euro (£84,000) could be hit with a 20% charge.

Eurozone finance ministers are due to meet in Brussels this evening to discuss the situation, and potentially sign off on an agreement that could prevent a fresh crisis in the area.

The UK Government has promised to compensate any British Armed Forces personnel left out of pocket.

However, the island's 60,000 British expats, who hold two billion euro (£1.7 billion) in accounts there, will not be exempted from any settlement.

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