Greater Grand Theft Cyprus
by Stephen Lendman
Cyprus' economy is being destroyed. It's heading for perhaps the most extreme depression in modern times.
Hit 'em again harder is policy. Cyprus is Exhibit A. It's pound of flesh demanded got greater. " Could it possibly get any worse ," headlined Cyprus Mail?"
Weeks after agreeing to Eurocrat terms, six billion more euros are demanded. A leaked European Commission " Assessment of the public debt sustainability of Cyprus " report revealed it.
At issue are "needs for the recapitalization of the banking sector, the redemption of maturing medium and longterm debt, including loans and fiscal needs," it said.
Another 600 million euros will be raised through higher corporate taxes. Gold reserves sales may raise another 400 million. Eurocrats demand they be sold. Their public debt sustainability report mandates it. Clause 29 states:
"Sale of excess gold reserves: The Cypriot authorities have committed to sell the excess amount of gold reserves owned by the Republic. This is estimated to generate one-off revenues to the state of 400 (million euros) via an extraordinary payout of central bank profits."
Privatizations and privately held debt rollovers will raise more cash. How much remains to be seen.