Merkel to Cyprus: 'Talk to Troika not Russia'

APF via The Local ^ | March 19, 2013

[cunning_fish]

German Chancellor Angela Merkel stressed in a phone call with the president of Cyprus that his country hold talks only with international creditors on its bailout deal and not third parties like Russia, a government spokeswoman said on Tuesday.

"A telephone call between Mrs Merkel and the Cypriot president took place yesterday evening," the spokeswoman told news agency AFP. " The chancellor once again emphasised that the negotiations are to be conducted only with the Troika," she added, referring to the term used for the European Union, the European Central Bank and the International Monetary Fund.

The comment was made as the Cypriot finance minister headed to Moscow after an explosion of anger in Russia at the EU bailout deal for the island that could see Russian investors lose billions of euros. In exchange for a €10 billion ($13 billion) bailout for debt-laden Cyprus agreed by EU leaders on Saturday, a controversial levy will be slapped on bank savings. The move has raised widespread anger in Cyprus, but also in Russia, where investors have placed vast amounts of cash in the island's banks.

The German spokeswoman also declined to say whether the phone conversation took place before or after Merkel met French President Francois Hollande and European Commission president Jose Manuel Barroso in Berlin late Monday.

[old curmudgeon]

Is it better to refuse help or is it better to use the “help” to gain control?

Like an attorney I knew, now dead, who took stock from companies that were in trouble, had no money but needed a lawyer.

After some time, the company owners found that they were no longer the owners. He did this several companies.

Or the lawyer, doctor or shrink to takes his pay in trade from the women.

Better to say no.

But be that as it may, I expect the EU to fail. I expect that so many people with real wealth will move it out of the EU, thus starving it to death.

I don’t expect all of this to take place overnight. Some of it will but others will move later and in progressive amounts as they determine where and in what to invest in.

[what's up]

it is pretty fair if Cypriot failure is getting paid by EU, not investors who has their money in Cypriot=EU banks.

In other words, we should pay for Chicago when it goes bust instead of letting them sort it out themselves since they made their mess?

[justa-hairyape]

Because the Cyprus banks were trying to pay high interest on deposits to attract more deposits. They were paying the kind of interest banks used to pay when the fiat based governments were still solvent. Same situation as a storage unit business owner charging low 1970’s rents on his storage units. He gets more business, but has trouble paying the bills. If he is on the verge of losing his business, the storage unit renters are not responsible. The people who loaned the business owner money to start his business are responsible.