euronews reporter – The Greek debt that became Cyprus’ Trojan Horse

http://www.euronews.com/ Some news from Cyprus, which sounds uncannily like news from Greece: the country does not have access to the international capital markets and economic reforms are going at a snail’s pace. Cypriot banks are drowning in greek junk bonds. That’s why they need a muti-billion euro lifeline now too…

More new faces are showing up at the soup kitchen in the southern Cypriot city of Limassol, entire families asking the orthodox church for a free meal. The church is warning that some radical new changes are afoot.

Cyprus needs a bailout. The communist ruled EU-member is cash-strapped. Unemployment is on the rise and the economic outlook is gloomy.

Fifty-seven year old Costas is looking for a job. Nothing special: just something, anything.

But instead of blaming the lack of competitiveness of the Cypriot economy, banks for their investment choices, or even the politicians for not having reformed the island’s economy in time, he blames the EU’s free labour market.

Costas Panayi, unemployed, Limassol
“In Cyprus there is a big problem now. Iit is getting worse, because more people come here to eat. They do not have food…300 people and families… and there are no jobs in Cyprus, because of the Europeans that came from Romania, Bulgaria, all over the place – and they take the jobs of the Cypriots.”

But the problem also lies elsewhere: Cyprus suffers from it’s close links to crisis-shaken Greece.

Just nearby the church’s soup kitchen, Cypriots and tourists mingle happily on the Limassol beach.

During the last few decades, the southern part of the still-divided island got used to stunning growth rates and huge cash-inflows from abroad.

But the greek nightmare throws a frightening shadow over the Cypriot paradise.

For more than a year now, Cyprus has been cut off from international capital markets. Double-digit interest rates make it impossible for Cyprus to finance it’s current budget deficit through market condition loans.

The party is over, the orthodox church reminds us and a new reality is beginning to bite.

When the church started the food programme in Limassol in 2003, just a few elderly people showed up. Since then, the number of hungry mouths has multiplied.

Giouli Chatzaki, Social worker, Limassol
“We have a lot of families coming here. The last two years we had a lot more families coming and asking to get some food because it is a free service and the reason is that one or even two of the parents have usually lost their jobs. We have children that can not afford to buy a sandwich or a juice, in the school”.

Cyprus may need a bailout that is more than half the size of its 17 billion euro economy.

The employment agency in Nicosia is crowded. The jobless rate just climbed over ten percent. Compared to Greece, it’s low. But for Cyprus, that’s extraordinarily high. For the last two years, twenty-eight old, highly qualified Andreas has been unemployed. Now he wants to leave.

Andreas Polycarpou, Unemployed, Nicosia
“If I were lucky, I would find a job in the rest of Europe, maybe in Germany, in France, maybe. Or I am looking for a job in Australia or Canada, but they want a visa for those countries and it is not easy to get a visa now”.

In Europe, youth unemployment is highest in Greece at fifty-three percent. Cyprus lies at twenty-nine percent, while Germany enjoys Europe’s lowest youth unemployment rate with just eight percent. The EU average is twenty-two percent.

Twenty-seven year old Yianna studied graphic design and downscaled her career hopes, but couldn’t even land a secretarial job. Her mother has been unemployed for two years and her father – who worked in the construction sector – is jobhunting too.

Yianna Philippou, Unemployed, Nicosia
“I’ve been looking for a job for six months now. All my friends are in exactly the same situation as I am, they can not find anything at all. Because of the crisis, I got fired by a company that had to close down one of it’s three shops”.

Cypriot banks’ balance sheets are suffering under the weight of bad Greek debt. An estimated twenty-three billion euros were channeled from Cyprus to Greece, hence the need for urgent recapitalisation.

Cyprus’ three biggest banks are exposed to the tune of fourty-two percent, seventeen percent and thirty-four percent respectively, with regard to Hellenic debt.

When investors agreed last year to what is called a “greek haircut”, it wasn’t just hair they lost.

This is especially true for the Cypriot banks that bought up Greek junk bonds. They lost three quarters of their value due to that “haircut agreement”.

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25 thoughts on “euronews reporter – The Greek debt that became Cyprus’ Trojan Horse

  1. No,not republic of cyprus. It couldn’t no time a state and doesn’t
    represent the entire island.There are Turkish Republic of Northern Cyprus
    in the north !! and ın the south, existing in a banana republic :)

  2. Again to the Victor goes the spoils of War. We conquered and a Brit Named
    Laurence whooped your asses all over the place. It’s ironic that you speak
    of Turkish pride when you reside in the UK. OOOOOh what a laugh indeed!

  3. What are you doing in America…Shouldn’t you be in Europe then? Do you
    think anyone likes Americans? That is a laugh, being an American SLAVE
    race. Get out of USA!

  4. Yes yes, everyone hates us but everybody asks us for hand out. Just
    remember we are the worlds biggest supplier of food and without use you
    would all cease to exist.

  5. If the Jews are slaves that’s fine. I AM A SON OF ROME BITCH! AND MARS WILL
    SMITE THEE A THOUSAND WAYS! THE SONS OF MARS WANT YOUR BLOOD DISPLAYED AT
    MARS’ TRIUMPH OVER THE WEAK! HAIL CAESAR BITCH! Your the baby killers, the
    boy fuckers, the prison beaters, the rapists, your not warriors, your not
    even men. HAHAHAHAHA!

  6. Oooh an Italian IMMIGRANT background? But, you’re an American now? But, why
    would anyone want to be Italian? Another filthy disgusting people like the
    Greeks. Hahahahahaha Get out of America!

  7. What is wrong with you? No-one likes Italians! You’re known for surrender,
    not fighting…oh and NOT FIGHTING. Not a warrior race. My Hunnic ancestors
    f**ked your people real good. Hahahahaha But, what do you expect from an
    inferior race of dogs? Like I said…GET OUT OF AMERICA.

  8. Your Huns came at the Falling of Rome….and…..in the end….THE ROMANS
    STILL BEAT THEM, HAHAHAHAHAHA! Are we known for Surrender? Why don’t you
    look at why that is? Lest than 30% of Italy liked Mussolini and most fought
    against him. Yes, when we dont like leaders WE KILL THEM. Your people just
    take it like broken whores. We also fought to the last Man against the
    Brits. We Conquered most of Europe. We still have a Church that rules the
    Masses. The list is long so if you’d like I’ll list em!

  9. The Romans were also f**ked by the Germanic tribes. Oooh AND AND AND..The
    Romans were so inferior..they had to use NON-ITALIANs in the later years.
    Like I said, Romans are no warriors. A race of inferior dogs. That’s why
    you’re in USA now. And Romans are now gone for good. Turks= warrior race
    since the beginning of time. Joos= Slave race!

  10. LMFAO, what a fucking IDIOT! You clearly know nothing of History. Rome had
    fought several Civil Wars and was fighting off several nations at once. The
    Turks NEVER Fought a Multi front war or they would not be here now. The
    Germans were hired because of political discontent, plague, civil unrest,
    constant war, imperial split, etc. Turks never dealt with this. But WWI
    sure showed you jack asses how “great” at war you were. The Turks only
    fought dying empires and small kingdoms they suck at war!

  11. WW1 showed one thing for sure. That Italians are inferior. LOL Oh nice try
    at invading Greece also. and when I say “try” I mean PATHETIC.LOLOLOLOLOL

  12. Lets take a look at the Facts. Italy had just finished WWI (btw they beat
    the Austrians until Austrians AND Germany United to push em back with WAY
    MORE MEN) (ur a dumb ass for not knowing this -_-) they send 250,000
    Soldiers to Spain to Help Franco’s revolution. The Took Ethiopia, Albania,
    and Libya not too long after. They hated Mussolini and you wonder why they
    didnt do good in WWII? Like I said you Turks are truly backwards in your
    logic. Whole of Greece vs a handful of Arabs? We win their!

  13. Friggin heck. You’re one f**kwitted YANK. Why can’t you get this in your
    skull DAGOOO. You’re a son of a ROMAN prostitute pedo pimp. Italians cannot
    fight. You’re no warrior race. And please..STOP RAPING YOUR SISTER!

  14. Not really, I’m a history major and you, you clearly know jack shit about
    anything. You get a taste of historical highlights and assume you know
    something. BUT you DON’T. Rome Ruled Europe sooooo much longer than Turkey
    ever existed. Deal with the facts kid…your people just arent much at all
    but a foot note in history. Actually I am of Noble descent so your not
    really hurting my feelings with your ASSuming of things you clearly know
    nothing about. It’s funny how stupid people can be!

  15. Not really, I’m a history major and you, you clearly know jack shit about
    anything. You get a taste of historical highlights and assume you know
    something. BUT you DON’T. Rome Ruled Europe sooooo much longer than Turkey
    ever existed. Deal with the facts kid…your people just arent much at all
    but a foot note in history. Actually I am of Noble descent so your not
    really hurting my feelings with your ASSuming of things you clearly know
    nothing about. It’s funny how stupid people can be!

  16. Go back to school you dirty bastard. America was never Turkic. You left
    your disgusting lands from Mongolia and settled in Ionia… go practice
    Islam and have sex with children just like your prophet.

  17. Greeks are number when it comes to pedophillia. Raping little kids is an
    old Greek trait. You don’t believe me? Take a look at your philopshers
    Hahahahahaha. And America/Canada IS TURKIC-MONGOLIAN. Shared heritage. You
    disgusting filthy scum. How can you deny us America and Canada?

  18. “Pure descent”????? Pure subhuman I think you mean. I’m proud to be a
    Turk..A race of people that don’t rape small children like you filthy
    Christians Hahahahahahaha By the way….I’m no muslim.

  19. Your not Muslim? SSSSHHHHHHH dont tell the rest of your people or they’ll
    hang you since they are not pro choice and backwards cavemen (ps, this make
    you sub human). Also Turks arent a race, they are a nationality. AAAAAAND
    yes the Turks fucked small boys. Look up “Radu and the Turks” and you’ll
    see that. You come from boy fuckers!

  20. Ok but your people do the same thing and instead they name them “profits”
    so what do you want me to say? Pedophiles in the US can get up to life in
    prison so doesnt happen like that here.

  21. International police led by a UK team say they shut down the largest
    internet paedophile ring yet discovered. The global forum had 70,000
    followers at its height, leading to 4,000 intelligence reports being sent
    to police across 30 countries. Swoops also took place in the US, Canada,
    Australia, New Zealand, Holland, Italy, Belgium, Greece and Poland. The
    child rape holidays were organised to Thailand and Brazil. Please tell me
    why does this go on in good civilized Christian nations?

  22. You call yourself Turkish Australian..You brainwashed backward,
    megalomaniac banana. When the Greeks were engaging in democracy,
    literature, science, mathematics, arts..your ancestors were sleeping in
    trees. Get a hold of yourself and don’t try to convince us, convince
    yourself!! Was the Pythagorean formula Turkish??

  23. stupid cyprus peaple, who are you? for race with Turkey, hungry cyprus
    peopple all will die fm hungry, if you want Turkey can help to you 20-30
    billon euro hahahahah

  24. Now, before we get into the impossible task of withdrawing any benefits
    from the past, I would like to point out that the ancient Greeks engaged
    openly in homosexual relations, has it´s GDP plummeting since 2003, and is
    the birthplace of words like Chaos, Panic, and narcissism. Please let´s not
    jump into conclusions about one nation´s superiority over the other at this
    stage.

  25. Let´s hope that you greeks start fighting like heroes against corruption
    and nepotism and paying your taxes like the peolpe in northern
    Europe……..

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