Eurogroup Press Conference - Live Webcast (And Full Eurogroup Statement)

Tyler Durden's picture

It's 2:30am, do you know where your deposits are? Tune in to see the Eurogroup explain how this is in the best interest of the Cypriot people, how the 'deal' illustrates the solidarity of the European people, and how the worst of the crisis is now behind us.



Live Webcast here...

Here it is - in all its glory. The full Eurogroup statement explaining how there is no need for the Cypriots to vote on this, how Laiki bank is totally liquidated with equity, debt, and uninsured depositors wiped out, and how they believe in some way that this will not end in a disorderly process...




25 March 2013

Eurogroup Statement on Cyprus

The Eurogroup has reached an agreement with the Cypriot authorities on the key elements necessary for a future macroeconomic adjustment programme. This agreement is supported by all euro area Member States as well as the three institutions. The Eurogroup fully supports the Cypriot people in these difficult circumstances.

The programme will address the exceptional challenges that Cyprus is facing and restore the viability of the financial sector, with the view of restoring sustainable growth and sound public finances over the coming years.

The Eurogroup welcomes the plans for restructuring the financial sector as specified in the annex.

These measures will form the basis for restoring the viability of the financial sector. In particular, they safeguard all deposits below EUR 100.000 in accordance with EU principles.

The programme will contain a decisive approach to addressing financial sector imbalances. There will be an appropriate downsizing of the financial sector, with the domestic banking sector reaching the EU average by 2018. In addition, the Cypriot authorities have reaffirmed their commitment to step up efforts in the areas of fiscal consolidation, structural reforms and privatisation.

The Eurogroup welcomes the Terms of Reference for an independent evaluation of the implementation of the anti-money laundering framework in Cypriot financial institutions, involving Moneyval alongside a private international audit firm, and is reassured that the launch of the audit is imminent. In the event of problems in the implement ation of the framework, problems will be corrected as part of the programme conditionality.

The Eurogroup further welcomes the Cypriot authorities' commitment to take further measures.These measures include the increase of the withholding tax on capital income and of the statutory corporate income tax rate. The Eurogroup looks forward to an agreement between Cyprus and the Russian Federation on a financial contribution.

The Eurogroup urges the immediate implementation of the agreement between Cyprus and Greece on the Greek branches of the Cypriot banks, which protects the stability of both the Greek and Cypriot banking systems.

The Eurogroup requests the Cypriot authorities and the Commission, in liaison with the ECB, and the IMF to finalise the MoU at staff level in early April.

The Eurogroup notes the intention of the Cypriot authorities to compensate potential individual victims of fraudulent practices, in line with established legal and judicial procedures, outside the programme.

The Eurogroup takes note of the authorities' decision to introduce administrative measures, appropriate in view of the present unique and exceptional situation of Cyprus' financial sector and to allow for a swift reopening of the banks. The Eurogroup stresses that these administrative measures will be temporary, proportionate and non-discriminatory, and subject to strict monitoring in terms of scope and duration in line with the Treaty.

Against this background, the Eurogroup reconfirms,as stated already on 16 March, that – in principle - financial assistance to Cyprus is warranted to safeguard financial stability in Cyprus and the euro area as a whole by providing financial assistance for an amount of up to EUR 10bn. The Eurogroup would welcome a contribution by the IMF to the financing of the programme. Together with the decisions taken by Cyprus, this results in a fully financed programme which will allow Cyprus’ public debt to remain on a sustainable path.

The Eurogroup expects that the ESM Board of Governors will be in a position to formally approve the proposal for a financial assistance facility agreement by the third week of April 2013 subject to the completion of national procedures.


Following the presentation by the Cyprus authorities of their policy plans, which were broadly welcomed by the Eurogroup, the following was agreed:

1. Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework.

2. Laiki will be split into a good bank and a bad bank. The bad bank will be run down over time.

3. The good bank will be folded into Bank of Cyprus (BoC), using the Bank Resolution Framework,after having heard the Boards of Directors of BoC a nd Laiki. It will take 9 bn Euros of ELA with it. Only uninsured deposits in BoC will remain frozen until recapitalisation has been effected, and may subsequently be subject to appropriate conditions.

4. The Governing Council of the ECB will provide liquidity to the BoC in line with applicable rules.

5. BoC will be recapitalised through a deposit/equity conversion of uninsured deposits with fullcontribution of equity shareholders and bond holders.

6. The conversion will be such that a capital ratio of 9 % is secured by the end of the programme.

7. All insured depositors in all banks will be full y protected in accordance with the relevant EU legislation.

8. The programme money (up to 10bn Euros) will not be used to recapitalise Laiki and Bank of Cyprus.

The Eurogroup is convinced that this solution is the best way forward for ensuring the overall viability and stability of the Cyprus financial system and it s capability to finance the Cyprus economy.

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Zero_Sum's picture

"Troika to contact Russian gov't on deal" = "Hey Putin.... knock knock." "Who's there?" "SUCK IT!"

Zer0head's picture

Officials say a vial containing a virus that can cause hemorrhagic fever has gone missing from a research facility in Galveston, but say there's no reason to believe there's a threat to the public.

Spider's picture

No Cypriot parliament vote needed??  Dont get those pesky democratically elected representatives involved - well played EU...

Western's picture

Will somebody please find out;


1) Where are the Cypriot politicians banking and getting their paycheque from?


2) Where are the Cypriot police banking and getting their paycheques from?


Seriously, why the fuck are these people still working if their money is about to evaporate? I suspect it's because their money is in tact, safe, corrupt.

Supernova Born's picture

Global banksters astride humanity... 

Fuck us all.

TwoShortPlanks's picture

Sheldon Schaeuble:    Knock-Knock-Knock "Putin?"...Knock-Knock-Knock "Putin?"...Knock-Knock-Knock "Putin?"

JPM Hater001's picture

Remember Brando and the balls...

Bat shit crazy

Manthong's picture

“newly adopted Bank Resolution Framework”

Whew!.. a breath of fresh air.

So much better than the old bank framework where there was an expectation that private property was secure.

StychoKiller's picture

WHY Cyprus was put through all this:

[quote] The Eurogroup welcomes the Terms of Reference for an independent evaluation of the implementation of the anti-money laundering framework in Cypriot financial institutions, involving Moneyval alongside a private international audit firm, and is reassured that the launch of the audit is imminent. In the event of problems in the implement ation of the framework, problems will be corrected as part of the programme conditionality. [/quote]

Emphasis mine.

silver surfer's picture



LINK TO: “newly adopted Bank Resolution Framework” 

Read it and weep, you will be dead and gone before you finish.




Paracelsus's picture

Did you mean Humphrey Bogart in the Caine Mutiny,with the ball bearings?

toys for tits's picture

I bet this wouldn't have been the decision of the Troika if any of those assholes had money in the Cyprus banks.

uncle_vito's picture

Sounds like Obama.  Do not need that pain in the ass congress involved.

Lore's picture


In what dictionary does the word "resolve" mean "STEAL?"

They think they're so clever, taking the PRIVATE PROPERTY of these people, and expect no consequences???



OpenThePodBayDoorHAL's picture

"All of your base...base...base...Are belong to Us...Us...Us..."


And why the hell did they have to call it the "Troika"? Sounds creepy. Couldn't they have called it "The Committee for Public Safety"...or maybe "Department of Euroland Security""?

Buck Johnson's picture

They are downplaying this big time, I have a very strange feeling that we may be looking at the start of another false flag.  Also ask yourself this, if the economy was about to tank wouldn't be better to blame the tanking of it on a sickness that is spreading around the nation.  And on top of that I'm sure that this fever is tough on old people.

JackT's picture

Rabid skunks in Russia and now fevered rodents in the US..sounds about right

sunnydays's picture

Yeah, but then Putin will say "we never forget"  We will take you down!  I will look forward to that!  Wait until the Cyprus people start destroying the banks too!

  I will cheer the Russians on too!   Take the EU Down!  

Assetman's picture

Putin really doesn't need to do any such thing.

The Russian Mafia, however, will likely be taking pot shots at selected EU leaders... if indeed they were harmed financially.


defencev's picture

As Mathematicians say: Q.E.D. Where is collapse, abyss etc predicted by "Tyler"? Myself and others who said from the very beginning that this is nonevent proved to be correct once again.

Manthong's picture

OK, from a physicists perspective, relatively speaking, splitting the 99th nucleus is a non-event giving the entirety of a chain reaction.

pods's picture

Opening up the possibility of stealing deposit accounts in order to bail out the banks is hardly a "nonevent."

If that little nugget of information resonates, it could detonate the entire world of fiat banking.


defencev's picture

You guys living in your fantasy world based on wrong ideology, ignorance and brainwashing by blogs like that. There is no resonance in your sense of the word. Stock markets in Asia are up and rally will continue.Your stupidity will never pay off.

Now, where is that bitcoin chart?

pods's picture

That is why I don't use my stupidity and play around in "markets."


kridkrid's picture

and yet, here you are in the comments section of said blog. You'll claim that you are trolling, but the reality... you're trying hard to convince yourself of something.

Renewable Life's picture

Bitcoin is at $71 as I type this, and if your so fucking stupid to think that "confiscating rich peoples money in banks they thought were safe two weeks ago, is the answer, who's the dumbfuck who's brainwashed and living in a fantasy world now??

I can tell your just some schmuck with no money and a big mouth, because if you had real money, money above the fantasy insured level the EU is talking about, you'd be shitting your pants right now and trying to transfer it out of the EU banks the minute they open tomorrow!! Which is what 100's of billions will be doing over the next two days or week across the EU, Spain, France, and Italy to be specific! 

But good luck with that thesis, the stock market never goes down bullshit, it worked out great for the citizens of Cyprus, and the foreign account holders, im suure it will be different this time, everywhere else!

kridkrid's picture

everyhing is a "non event" until the event that "nobody could have seen coming" brings the house down. This isn't an "if" this is a "when".

Banksters's picture

Non event?  Closing banks, invoking capital controls, and  stealing depositors money is a fucking a typical day in the neighborhood.

ebworthen's picture

I remember people who kept saying that about Mt. St Helens too.

earleflorida's picture

'your hubris is defencevless, as is your logic equally impaired your lack of knowlege regarding human nature that dictates all rhymings of history' 

'if and only when you rest your laurels upon the politicians purse, that the real carnage manifest itself-- like a hybernating bear in its winter den that finds itself awoken in a sinkhole before the first thaw-- pities naught the fist foul that crosses ones path, for hunger outwits ones instinct'

ShortTheUS's picture

Attenion Rusisan Oligarchs:


You no longer has it...

Zero_Sum's picture

"I also like savings de moneys... just not in Cyprus banks."

Zero_Sum's picture

Still chuckling over your awesome reference, ShortTheUS. In honor of that timely post, I offer this for anyone who didn't get the joke:

Or for anyone who just wants to bask in the irony.

Ineverslice's picture



Dmitri....Is this true, what he is saying?

BaggerDon's picture

$$  New national anthem for CYPRUS and the FEDS free mkts...

WmMcK's picture

Everybody knows it's coming apart ...

machineh's picture


It's for their own good. Doctor's orders! 

Moral hazard occurs when victims can vote against their own fleecing.

Does the defendant get a vote on the jury? God forbid!

As Led Zeppelin used to sing ... WE ARE YOUR OVERLORDS


toys for tits's picture

We don't need to bother Parliament about changes we made to those pesky bankruptcy laws.  We're now going to have a good bank, bad bank.

We've already been running good cop / bad cop on you people.

permafrost's picture

Zere iz no need for democracy.

therover's picture

+1 for the Zep reference. 

earleflorida's picture

...this too, shall not pass, before the advent of tomorrows, morrow 

thisandthat's picture

You can take Germany out of Nazism, but you can't that Nazism out of Germany....

Lore's picture

This isn't Germany. This is "Troika."  The best thing Germans could do for the German people is get the heck out of the Euro.

thisandthat's picture

And troika is ECB as well, which means largely Germany - just hear Schaulble talk....

Lore's picture

These people are chameleons. They're only 'German' until the money is gone.

cristo's picture

come on fuckers speak already !