Cyprus Financial Disaster – The Conspiracy Concept

Most commentators agree that the Greek Republic of Cyrus has been unfairly dealt with by the troika of the European Commission, the European Central Financial institution and the International Monetary fund. The need for a nationwide federal government to impose a levy on deposits was a surprising and deeply disturbing innovation. The soreness for the governing administration of the Greek Republic of Cyprus was lessened by their choice to penalise deposits in excessive of 100,000 euros. This intended that most compact depositors, that is, the greater part of the citizens, would not put up with losses. People depositors with money in excess of 100,000 facial area a most unsure upcoming. Their accounts are frozen and they are probable to incur losses of up to 50%. Several of these depositors are Russians and they have built a major contribution to the financial system of South Cyprus in the latest many years.

The conspiracy idea runs as follows –

1 The EU has been discouraged and offended with the Greek Republic of Cyprus considering that 1974. The EU was led to believe that that the two south and South Cyprus would concur to the terms of the Annan Strategy and that the island would be re-united. Referenda took put in both of those areas of Cyprus. Voters in south Cyprus ended up in favour of reunification by a big the vast majority, but voters in the South turned down the Annan plan. In the South, the governing administration, church and most of the media publicly criticised the Annan strategy and promoted its rejection. This was badly been given in Brussels.

2 The ongoing and persistent hostility of the Greek Republic of Cyprus towards Turkey’s software to be a part of the EU has been a serious strain on relations in between the EU and Turkey. The escalating importance of Turkey as an financial energy in the Center East and its very important job in a resolution of the conflict in Syria have led the US to broker much better relations amongst Turkey and Israel. The US has been quietly operating powering the scenes to easy the path for Turkey’s accession to the EU. Although the Obama administration can claim some achievements in the recent thawing of relations concerning Turkey and Israel, the predictable intransigence of the Greek Republic of Cyprus has been a source of ongoing irritation in both of those Washington and Brussels. The truth that President Christofias was a communist and publicly admired Fidel Castro introduced him to the focus of the CIA. The two Presidents Bush and Obama refused to sanction CIA ‘dirty tricks’ aimed at discrediting President Christofias.

3 The response of the Greek Republic of Cyprus to mounting economic pressures was to seek out and secure a 2.5bn euro personal loan from Russia in 2011. This was an attempt by the governing administration to circumvent the Troika and its monetary disciplines.

4 Dependent on the above factors, a decision was created to punish and humiliate Greek Cyprus. The proposal that all lender accounts need to be levied emanated from the EU, who were being very well aware that the implementation of this sort of a proposal would be political suicide for any government.

5 The EU expected the Greek Cypriot governing administration to operate to Moscow in purchase to secure even further loans. The Greek Cypriots experienced a number of proposals for the Russians. They proposed that Russian traders obtain out the Laiki or Cyprus Common Financial institution and they ended up prepared to offer you the safety of the substantial and untapped pure fuel fields bordering Cyprus as extended term collateral.

6 The all-natural gasoline resources of Cyprus are a contested resource by the Greek Republic of Cyprus and Turkey, who argues that equally south and South Cyprus must share the gains of the useful resource. Turkey was briefed by the EU on the impending economical crisis in South Cyprus and created a number of bulletins about the purely natural fuel fields and the probably routing of pipelines to Turkey. It was also manufactured distinct to Russia that any exploitation of the resource by Gazprom, the Russian electrical power giant, would have to have the energetic cooperation of Turkey.

7 Turkey has now demonstrated the seriousness of the Cyprus gasoline situation by suspending its discounts with the Italian agency ENI. The Italian organization was doing the job on the Samsun-Ceyhan pipeline that will provide Russian and Kazakhstan oil to the coast of Turkey. The deal was summarily suspended in mid March 2013 owing to ENI’s license agreement with the Greek Republic of Cyprus

8 The mission to Moscow for extra financial loans was doomed to failure in advance of the Greek Cypriots landed in Moscow, and this remaining them at the mercy of the EU.

9 The requirement for 5.8bn euros to be confiscated from Cypriot bank accounts in order to launch a bailout of 10bn has devastated the banking and fiscal sector of the Greek Republic of Cyprus. The house sector, fuelled by desire from Russians, will soon be in totally free tumble.

10 Greek Cypriots have in contrast the economic disaster to the invasion of 1974 by Turkey. They are proper. The implications of the crisis will profoundly cripple South Cyprus for at the very least 5 a long time.

11 Turkey has now positioned alone as a saviour for the island of Cyprus. The Turks have designed proposals for the exploitation of the organic gasoline methods – First of all, the island turns into a united point out of Cyprus and there is joint exploration of the resource. Secondly, Greek and Turkish Cypriots type a joint committee to exploit and industry the resource, or thirdly, there will become a permanent two state solution for the Cyprus challenge.

12 The Greek Republic of Cyprus will have pretty number of choices left, other than that of getting much more accommodating toward Turkey and south Cyprus.