Visatopia Cyprus Customer Service Center, March 22 News:
1. The Cyprus government has drafted a new bailout plan
The Cyprus Parliament rejected the deposit tax bill on the 19th, and the government must seek new ways to raise the 5.8 billion euros required by the Eurogroup. Local media reported on the 21st that the new bailout plan, also known as "Plan B," includes the government still submitting a deposit tax bill, but with a much lower tax rate than previously proposed; Cyprus is applying to Russia for a 5 billion euro loan, seeking to postpone the repayment period of the 2.5 billion euro loan borrowed from Russia in 2011 from 2016 to 2021; nationalizing the welfare funds of semi-state-owned enterprises, which could raise 2 billion to 3 billion euros to cover the funding shortfall caused by the lower tax rate; and issuing government bonds with yields linked to future natural gas revenues.
2. The European Central Bank makes a statement on Cyprus
The European Central Bank announced that it will continue to provide emergency liquidity support to Cyprus until the 25th (next Monday). After that, the European Central Bank will only consider providing emergency liquidity support once the bailout plan from the European Union and the International Monetary Fund (IMF) is in place and the relevant Cypriot banks are guaranteed to be solvent.
3. Local bank operating hours in Cyprus extended until next Tuesday
4. The Central Bank of Cyprus stated that it will restructure Laiki Bank, the second-largest bank in Cyprus, to prevent its bankruptcy.
Going out today, I saw locals withdrawing money at bank ATMs. Although everyone is working as usual, it is clear that people are still nervous and concerned.
The Visatopia Cyprus customer service team will promptly inform Chinese investors about the developments of the Cyprus banking crisis.
Please stay tuned to the Visatopia website.
