Back
22 Mar 2013
Forex Flash: Cyprus stays in key focus - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the real focus remains in Europe and after several days of meeting with Russian officials, Cypriots have come back empty handed.
Additionally, they add that the Germans have made it clear that the Cypriot proposal for a solidarity fund that raids pensions is not acceptable. They write, “That’s after they had backed the Cypriot President's proposal last weekend to tax small depositors. The negotiating style, if one wants to call it that, is not helpful. Not attending meetings and more broadly, not talking to the Troika, has irked Cypriot neighbors.” The team believe that the restructuring of the country's' two largest banks appears to be a step in the right direction, but it does not sufficiently address the problem itself. They add, “The meaning and significance of the S&P downgrade of Cyprus' credit to CCC from CCC+ with a negative outlook escapes us.”
Additionally, they add that the Germans have made it clear that the Cypriot proposal for a solidarity fund that raids pensions is not acceptable. They write, “That’s after they had backed the Cypriot President's proposal last weekend to tax small depositors. The negotiating style, if one wants to call it that, is not helpful. Not attending meetings and more broadly, not talking to the Troika, has irked Cypriot neighbors.” The team believe that the restructuring of the country's' two largest banks appears to be a step in the right direction, but it does not sufficiently address the problem itself. They add, “The meaning and significance of the S&P downgrade of Cyprus' credit to CCC from CCC+ with a negative outlook escapes us.”