Russian money makes a comeback on Cyprus
- Written by E.Tsiliopoulos
A year in the island's bail-in plan, Russian offshore companies are still an important client of the Cypriot banking system.
Russian investments have been the stickiest point in negotiations between Cyprus and the Troika, a potential haircut in all investment being the main reason for the hick-up.
There is wide speculation that the reason a so called “bail-in” (a bank deposits haircut to fund the country's banking and fiscal debt) was chosen for Cyprus for the specific purpose of discouraging Russian oligarchs from investing in the island's offshore banking system.
The bail-in plan instituted a haircut in all deposits over 100000 euros, which meant taking most Russian investments lost a huge chunk of their profits. Still, a year in the island's bail-in plan, Russian offshore companies are still an important investing partner of the Cypriot banking system.
The Russian banking system is all but broken and oligarchs are in a constant search of safe banking havens. Even post bail-in, Cyprus still has the most elastic banking rules in the EU.
Naturally, all these seqestration means little for the country's unemployment figures, which are at 17.5%.
Related items
- A Greek wine ranked No. 2 worldwide, surpassing Riesling and Barolo
- What is hidden behind Turkey's proposal for a two-state solution in Cyprus and Palestine
- Prime Minister Kyriakos Mitsotakis’ speech at the 78th UN General Assembly
- Greek government committed to legality and consumer protection
- PM Mitsotakis to meet with Cyprus President Christodoulides in Nicosia
Latest from E.Tsiliopoulos
- Elon Musk was dazzled by... Eleni Tsolaki - "A wonderful way to wake up in Greece," he commented
- Skiathos: The sustainability of the island is the strategic compass for its tourism development
- Ministers attend commemorative events for Lord Byron in London, Missolonghi
- Crete's authorities, population taking part in largest Greek earthquake exercise; to serve as model
- Def. Min. Dendias: Greek airspace will become impenetrable under defense reform