This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Gains More Time To Achieve Surplus

MENELAOS HADJICOSTIS

NICOSIA, Cyprus (AP) â¿¿ Cyprus has been granted an extra year â¿¿ until 2017 â¿¿ to achieve a targeted budget surplus of 4 percent as part of bailout negotiations with international lenders, the government spokesman said Monday.

The change is designed to prepare for what could be a deeper than expected economic slowdown as the Mediterranean country is forced to drastically shrink its banking and financial industry.

Under a preliminary agreement with Cyprus' euro area partners and the International Monetary Fund for billions in rescue money, Cyprus had until 2016 to generate the budget surplus target through spending cuts and tax hikes.

But that deal was based on an earlier forecast that the economy would shrink this year by 3.5 percent of gross domestic product.

A Cyprus government official who spoke on condition of anonymity because he's not authorized to discuss details of the negotiations said the economy is now projected to contract by some 9 percent of GDP.

For that reason, government spokesman Christos Stylianides said Monday that negotiators are now hoping to extend the deadline to achieve a 4 percent budget surplus even further, to 2018.

Cyprus agreed last week to make bank depositors with accounts over 100,000 euros ($129,000) contribute to the financial rescue in order to secure 10 billion euros ($12.9 billion) in loans. Cyprus needed to raise 6 billion euros ($7.4 billion) on its own in order to clinch the larger package, and banks remained shut for nearly two weeks until politicians hammered out a deal.

To prevent mass withdrawals when the banks reopened on March 28, Cypriot authorities imposed a raft of restrictions, including daily withdrawal limits of 300 euros ($384) for individuals and 5,000 euros ($6,426) for businesses. That amounted to the first so-called capital controls that any country has applied in the eurozone's 14-year history.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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