This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cyprus Denies Claim It's Russian Dirty Money Haven

Finance Minister Vassos Shiarly said the government has nearly met a troika demand to cut spending and raise revenue by ⿬975 million over the next three years and that only a few issues remain to be ironed out. They include privatizing profitable, state-owned companies and supervision over the country's co-operative banks.

The main point of contention between Cypriot and troika officials is how much Cypriot banks need to recover from ⿬4.5 billion in losses they took on Greek government debt and bad loans.

Parliamentary Speaker Yianniakis Omirou said that the troika estimates the needs of the Cypriot banking sector ⿿ which holds assets eight times the size of the country's economy ⿿ to hover at around ⿬12 billion ($15.57 billion), twice as much as Cypriot officials believe. That's on top of the approximately ⿬4.5 billion the country needs to service its debt and pay its bills until 2016.

Cyprus has been unable to borrow from international markets for more than a year. A Cypriot request for a ⿬5 billion ($6.39 billion) loan from Russia ⿿ twice the amount Moscow gave Cyprus as a rescue loan last year ⿿ has so far gone unanswered.

The exact sum Cypriot banks will need won't be known before early next year when investment firm PIMCO and auditors Deloitte finish combing through the lenders' books. Shiarly said not having an exact figure won't keep the government from getting a bailout deal swiftly.

Although Shiarly said the government has enough cash on hand to pay public sector salaries for the next couple of months, state coffers are drying up fast. Moreover, prolonging the uncertainty over a bailout deal will tighten the noose around ailing domestic businesses and further drain confidence in the economy. That would be bad news for a country where unemployment has ballooned to 13 percent and the economy is projected to contract by some two percent this year.


Juergen Baetz in Berlin contributed to this story.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,948.34 +143.54 0.81%
S&P 500 2,076.45 +5.80 0.28%
NASDAQ 4,777.9080 +12.5280 0.26%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs