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Cyprus bailout inside info? 132 companies pull out over $900mn in deposits

RT | April 02, 2013

One hundred and thirty-two companies reportedly had inside knowledge of Cyprus’ impending levy tax as they withdrew deposits worth US$916 million in the run-up to the bailout deal.

The companies withdrew their savings in the two week period (between March 1 to March 15) leading up to the rescue deal that enforced heavy losses on wealthy depositors in Cypriot banks, according to Greek newspaper Proto Thema.

Shortly after this the EU ministers and the IMF hammered out a 10-billion-euro (US$13 billion) bailout agreement with Cyprus, which included a one-time tax on deposits held in Cypriot banks.

In the meantime all banks in Cyprus temporarily froze the amounts required to pay the tax on their clients’ deposits and stopped all transactions while the government negotiated the details of the agreement.

The companies on the list withdrew their deposits in euro, USD, GBP and Russian rubles and later transferred to banks outside of Cyprus. The total amount withdrawn comes to US$916 million.

The list consists of shipping and energy companies, legal practices and state-run companies, Der Spiegel reported. The published list was not yet verified.

It includes A Loutsios & Sons Ltd, reportedly co-owned by John Loutsios, the husband of Nikos Anastasiadis’ daughter Elsa. The company said to have transferred 21 million euro (US$27 million) from Laiki Bank in the week running up to the bailout. The money was then deposited in a London bank, Haravgi newspaper reported.

A Loutsios & Sons Ltd denied that it had withdrawn any money from its Cyprus bank account.

Anastasiades also denied the charges and called the reports an “attempt to defame companies or people linked to my family … [This] is nothing but an attempt to distract people from the liability of those who led the country to a state of bankruptcy.”

Earlier Haravgi newspaper reported that Cypriot Finance Minister Michalis Sarris has confirmed that the government knew in advance that the Eurogroup planned to impose a tax on bank deposits of more than 100,000 euro.

The list raises suspicion that certain companies had inside knowledge of the decision adopted by the eurozone’s 16 countries to finance Cyprus’ deficit.

Just last week the troika of international lenders along with Cyprus agreed on a 10 billion euro ($13 billion) bailout plan, according to which the depositors with more than 100,000 euro ($128,000) in the Bank of Cyprus would lose 37.5 per cent of their savings in exchange for bank shares.

These big depositors may further lose up to 22.5 per cent more if the experts consider the bank’s balance insufficient.

This means that those with big deposits in Cyprus’ largest bank could lose could lose up to 60 per cent of their savings in the harsh new EU and IMF bailout deal. Those with deposits less than 100,000 euro will be protected under the Cyprus deposit guarantee.

Financial journalist Clem Chambers believes other eurozone countries will follow the sad example of Cyprus.

“The system is not addressing the underlying problem of all of this, which is deficits – state deficits, trade deficits. Europe and America are bleeding to death and they are not doing anything about it,” he told RT.

“Unless they turn that round – and there is no sign they are going to – then the dominos must fall.”

The list, provided by the Greek newspaper Proto Thema, of the 132 companies that allegedly made substantial withdrawals prior to the levy’s announcement can be viewed at RT.

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April 3, 2013 Posted by | Corruption, Deception | , , , | Leave a comment

Cyprus displeased at reports that British bases provide help to Syrian rebels

Xinhua – August 23, 2012

NICOSIA – Cyprus said on Thursday it had asked Britain to give an official explanation for a Sunday Times report alleging that the British Sovereign Bases in Cyprus provide intelligence to Syrian rebels which helped them deal effective strikes against the Syrian army.

Foreign Minister Erato Kozakou-Markoulli told the state radio that she had instructed the Cypriot High Commissioner (Ambassador) in London to make a demarche to the British Foreign Ministry asking for official information on the report.

“It is a very serious issue if the Bases are being used for purposes other than those explicitly set out in the Treaty of Establishment,” Markouli said.

She said she expected a British reply by the end of the day.

Markoulli added that the 1960 Treaty of Establishment under which Cyprus was granted independence states that two bases retained by Britain can only be used for defensive purposes.

British paper the Sunday Times claimed on Sunday that British agents operating in the British bases were collecting intelligence on Syrian army movements which is then channeled through Turkey to forces fighting the the Syrian army.

A spokesman for the British High Commission in Cyprus on Monday refused to confirm or deny the report, citing the official government position not to comment on intelligence or operational matters.

August 23, 2012 Posted by | Illegal Occupation | , , , | Leave a comment

Chicago’s Greeks and Jews watching realignment in Mediterranean with shared interest, concern

By David Kashi | Medill Reports | May 03, 2012

A century ago, so many Greeks were arriving in Chicago that Hull House hired someone who spoke the language to learn their stories. Businesses run by Greeks were popping up west of the Loop in what is now Greektown and the UIC campus.

But the Jews found Chicago first, coming steadily from the 1840s onward.

What both groups have in common is a strong bond for their homelands – Greeks frequently sending money home to family members and buying land, Jews supporting the efforts to create a Jewish homeland in the Middle East and supporting Israel since its creation.

“We have two of the most significant diaspora groups in Chicago, both Jewish and Greek,” said Endy Zemenides, executive director of the Hellenic American Leadership Council in Chicago.

The instability in the eastern Mediterranean recent years has brought Greek and Jewish communities in Chicago and across the U.S. together through an emerging trilateral alliance among the U.S., Greece and Israel.

“There is a need for an alliance. What is happening in the Middle East is affecting what is going on regionally and globally,” said professor Eytan Gilboa, director of the Center for International Communication at Bar-Ilan University in Israel.

Gilboa, a world-renowned expert on international communication and U.S. policy in the Middle East was in Chicago this week as part of “Today’s Middle East: Challenges, Leadership, Communication,” which is charged with tackling a range of topics ranging from Iran’s weapons program to the special ties Israel has with Greece and Poland. The program ends Sunday.

At one of the events Wednesday, titled, “Greece, Israel and the United States: An Emerging Trilateral Alliance in the Middle East,” co-sponsored by the Greek consulate and National Strategy Forum, a set of panelists discussed challenges in the Middle East and the importance of strong ties among the countries.

“This is a strategic relationship; this is a relationship that will last forever. This is where the Greek, Israeli, Cypriot, and U.S. partnership can make a difference,” said Zemenides, whose group is one of the most influential Greek organizations in the U.S.

Gilboa and Zemenides stressed the importance of communicating to Greek and Jewish communities about the emerging alliance in face of challenges.

“Greeks and Jews have worked together for centuries,” Zemenides said. “If they work together you can influence U.S. policy and can create stability in the Eastern Mediterranean.”

Insecurities faced by Israel and Greece today stem from Turkish assertiveness in the Mediterranean, nuclear proliferation, Iran’s weapons program, piracy in the high seas, terrorism, the Arab Spring, energy security and economic crisis.

“If you look at the map there is geopolitical-strategic change taking place. You can then understand the reason for improved relations,” Gilboa said.
All these events have caused great instability: So how can the emerging trilateral alliance stabilize the region and ensure the interests of the U.S., Greece and Israel?

By increasing the economic, military and energy ties taking place today and in years to come.

In 2010 prime ministers from both countries visited the other as a way to signify stronger diplomatic relations.

Benjamin Netanyahu was the first Israeli prime minister to officially visit Greece. There he and his Greek counterpart, George Papandreou, discussed many topics such as an increase of military and economic ties.

This past April the U.S., Israel and Greece conducted joint military exercise in the Mediterranean named Noble Dina, simulating potential confrontations with Turkey.

On a less ominous note, Greece received a boost to its tourism sector last year thanks to 420,000 vacationing Israelis who took new non-stop flights from Israel to Greece. As Turkey and Israel’s relationship soured in 2009, Greece opened its doors to Israelis who normally vacation in Turkey.

On another front, energy cooperation among Israel, Greece and Cyprus has increased as well, with the discovery of natural gas off the shores of Israel and extending to Cyprus, Turkey and Lebanon. The area known as the Levant Basin Province has enough natural gas for globalwide use for one year. Officials say they realize that the cooperation among Cyprus, Greece and Israel over the find increases the possibility of future confrontations with Turkey.

Though Greece is located outside the Levant Basin, it has shared national and economic interests with Cyprus.

The Greek-Israeli relationship was not always so cozy.

Before 1990, Greece was the only European member nation that did not have full diplomatic relations with Israel. Before then, Greece’s foreign policy was influenced by Arab states with whom it had important economic ties.

“We need an-on-the ground realistic assessment, we are on the outside looking in,” said Richard Friedman, president and chair of the National Strategy Forum, who moderated the event.

“We have honed in on the difficult issues and the people who have assembled in this room suggests to me that we have informed citizens,” Friedman said in his closing remarks to the 50 Greek and Jewish leaders in the audience.

“That is the whole purpose that we are all here. That is why we welcome Bar-Ilan University. What we are doing here is communicating.”

According to both Gilboa and Zemenides, economic constraints on countries have made alliances such as these attractive. Greece, Israel, the U.S. and even Cyprus have navies that make them Mediterranean powers. Combined, they can increase their influence.

“This alliance is fundamentally, culturally, historically, geo-strategically on the same page and it has to be encouraged,” Zemenides said. “We have to have stability in the eastern Mediterranean otherwise the world is in trouble.”

©2001 – 2012 Medill Reports – Chicago, Northwestern University.
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May 7, 2012 Posted by | Militarism, Wars for Israel | , , , , , , | Leave a comment

Bibi: First We’ll Take Tehran, Then We’ll Take Istanbul

By Richard Silverstein | Tikun Olam | March 28, 2012

Yesterday, brought ominous news regarding yet another aggressive Israeli projection of its military power in the Mideast.  Since 1967, with but a few exceptions (Osirak being one), Israel has mainly satisfied itself by retaining dominance over its frontline neighbors and not attempting to meddle in affairs of more far-flung states.  But with Bibi Netanyahu’s new policy of projecting Israeli power far outside Israel’s immediate sphere and threatening Iran with attack, we have an Israel ready and willing to step far outside its former comfort zone.

To show that Bibi’s aggressive, interventionist approach isn’t a fluke, UPI reports that Israel is negotiating with Greek Cyprus for placement of an Israeli air base on the island, ostensibly to protect the new Israeli-Cypriot joint gas exploration project:

Israel is already preparing to launch a major security operation to protect the offshore fields and the attendant facilities in its waters.

This will involve missile-armed patrol vessels, round-the-clock aerial surveillance by unmanned drones and other naval detachments, primarily to defend the energy zones against attack by Hezbollah, the Iranian-backed force in neighboring Lebanon.

This field is in dispute with Lebanon, which also claims title.  Turkey too disputes the area on behalf of Turkish Cyprus.  This certainly is one reason for the Israeli move.

But an even more important one in the long-term, is Israel confronting Turkey with its power.  It’s a rather naked move.  A flagrant invasion of Turkey’s sphere of influence, which can only bring a Turkish response.  The response will likely come within an area under Israel’s sphere of influence.  Oh say, like Gaza.  Someone with a cool head ought to start looking at this developing rivalry and see where it could lead (or end).

There is only one way to resolve territorial disputes of the nature of the one concerning the Cypriot gas field, negotiation.  Israel, however, doesn’t believe it negotiation.  It believes in naked projections of military strength.  An Israeli base on Cyprus would be a forward projection of Israeli power in the same way that the U.S. base in Diego Garcia is our forward projection of power into the Mideast (currently threatening Iran, but previously used to bolster invasions of Iraq and Afghanistan).

It’s bad enough with the U.S. making a pretense of being the cop of the world and getting itself mired in places it should never be.  But do we want Israel, with its history of wars and endless bloodshed, tangling not just with Palestinians or Arab militant groups like Hezbollah, but with full-fledged regional powers like Turkey?  Let’s not forget that country’s age-old rivalry with Greece which has also led to centuries of historic conflict.  Now Israel is playing footsie with the Greeks and becoming best friends with the current economic basket case of Europe.  Greece is only too happy to oblige and take advantage of the power Israel has to offer.

Do we really want Israel playing with fire in this way?  I fear this can only end badly.

Another related matter that concerns me is the economic bonanza that this new-found oil portends for Israel, one of the most economically striated nations in the world.  The new gas and oil deals promise to make the Israeli elite even richer.  It will bring untold billions to Israeli politicians and generals who will flock to consult for the new enterprises (as has Meir Dagan).  One place this wealth will not go, is into the pockets of those who need it most inside Israel: the poor, the disenfranchised, etc.  The Haredi and Israeli Palestinian poor will stay poor.  There will be few, if any programs to share the wealth or provide benefits to those in need.  After all, this is Bibi Netanyahu, a disciple of Milton Friedman, an economic Hobbesian.  It’s dog-eat-dog in the Likud world.  Just as long as Bibi and his party cronies are taken care of, little else matters.

In truth, this would likely happen whoever was in power.  The only thing that would change is the names and faces of those benefitting.  Labor and Kadima would be no better as anyone who knows about Ehud Barak’s wealth-producing consulting jobs while he was out of power, is aware.  So for any who believe in the dreams of liberal Zionism and the Declaration of Independence, that Israel is a nation meant to realize a vision of brotherhood, tolerance and human dignity, the coming oil boom will frustrate you.  But undoubtedly, if you’re a liberal Zionist, you’ll, as Tim Hardin wrote, “still look to find a reason to believe.”

March 28, 2012 Posted by | Ethnic Cleansing, Racism, Zionism, Illegal Occupation, Militarism, Timeless or most popular | , , , , , , | Leave a comment

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