UK customers escape bank levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.

Latest ITV News reports

Cyprus president returns to face nervous nation

by - Europe Correspondent

Cyprus president Nicos Anastasiades is on a flight back from Brussels now. He will return and (deliver a TV) address at 7:00pm local time (5:00pm GMT), during which he will lay out some more of the detail from the bailout deal.

He will try to calm the nerves of people in the country and stress that he did the best deal possible. Mr Anastasiades needs to restore confidence because people feel let down.

They feel their government was not properly prepared when it went into this in the first place. It now needs to do as much as it possibly can to safeguard people from the economic impact of everything that is going on.

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Cypriots fear impact of bailout 'taking from the rich'

by - Europe Correspondent

People I've spoken to (in Nicosia) are extremely relieved that (the Cyprus bailout) deal has been done, but are fearful now for the future.

The head of the Cypriot finance committee said this morning he expected the economy to retract by around 10 per cent.

Though it is easy to think the small savers and normal people have been protected in this deal, the richest losing significant deposits is going to have a knock-on (effect) right the way down the money chain.

The people who are likely to suffer extremely badly are those on low-paid jobs, now waiting to see if there will be enough money in this economy to keep them paid and in work.

People are genuinely fearful that taking from the rich, as it is seen here, is also going to very seriously affect the poor.

EU task force to oversee Cyprus bailout spending

President Barroso called on Cyprus to "show unity and responsibility" when implementing the agreed rescue package. Credit: Barry Cronin/PA Wire

The European Commission has established a task force to provide "technical assistance to the Cypriot authorities" in implementing the €10 billion rescue package, EU President Jose Manuel Barroso has announced.

The body will be based in Brussels, with a support team in Nicosia, he said in a statement, and its work will "have a strong focus on employment, competitiveness and growth".

President Barroso said the agreed package for Cyprus was "not only about financial stability. It is about restarting the economy."

Regarding the support shown for Cyprus, he added: "As we have shown in the past, Europe faces its challenges together. We do not leave Member States facing a financial crisis alone."

Talks ongoing for partial reopening of Cyprus banks

by - Europe Correspondent

Talks are going on this afternoon between government ministers, the Cyprus Central Bank and the European Central Bank (ECB) over the reopening of banks tomorrow.

Ministers are hopeful there will be a partial reopening, possibly for a few hours, for some services.

There will be some capital restrictions, though ITV News understands the ECB is being much more flexible on terms now a deal is done.

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Russia to renegotiate Cyprus loan after EU bailout

Vladimir Putin recently criticised proposals for a bailout-enforced levy on Cypriot bank deposits as "unfair, unprofessional and dangerous". Credit: Ahmet Dumanli/AA/ABACAPRESS.COM

President Vladimir Putin has told his government to negotiate the restructuring of a Russian bailout loan to Cyprus, his spokesman has said.

The announcement signals Moscow's support for a €10 billion bailout, despite concern that Russian depositors in Cyprus could take losses as a result.

Cyprus had requested an extension of an existing €2.5 billion Russian loan, and a reduction in the interest it charges to 2.5 per cent from 4.5 per cent. Talks last week failed to agree on a restructuring.

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