Cypriot Church puts all its assets at disposal of state

Source: Beta, Tanjug

NICOSIA -- The head of the Cypriot Orthodox Church has offered to help rescue the Cypriot economy by putting all Church property at the disposal of the government.

People protest against having money taken from their bank accounts (Tanjug)

"The entire Church property has been made available to this country in order to prevent the collapse of the economy," said Archbishop Chrysostomos II after a meeting with Cypriot President Nicos Anastasiades, hours after the country's parliament rejected the conditions set for a European aid package.
According to the archbishop, the Church has offered to to mortgage its property for the purchase of government bonds. He, however, declined to comment on what the amount that could be collected in this way.

The Church is the largest land owner in Cyprus and has shares in various companies, including in Hellenic Bank.

Cyprus must present a plan to collect EUR 5.8 billion, after it on Wednesday rejected a proposal to introduce a tax of up to 10 percent on bank deposits, which was set as a requirement for international loans.

In the meantime, Cypriot Finance Minister Michalis Sarris is visiting Moscow. He said that there was still no agreement on a Russian loan to Cyprus, the Russian media reported today.

"The talks were very good, constructive and fair," Sarris said after a meeting with Russian Finance Minister Anton Siluanov.

The Cypriot minister announced the resumption of negotiations in order to find a "solution that will enable the support of Russia", and added: "We'll be here until we reach an agreement."

Siluanov said in early February that Russia was ready to restructure the debt and to possibly mitigate repayment terms for previously approved loans.

The Cypriot parliament yesterday rejected a draft law on the basis of which bank clients would have up to 10 percent of their savings taken from their accounts.

Cyprus requested EUR 15.8 billion to rescue its banks, put in order its finances and avoid the possibility of leaving the eurozone.

The EU countries and the International Monetary Fund (IMF) responded by setting taxation of savings deposits in Cypriot banks as a condition.

The agreement between the government of Cyprus and international lenders - which the Cypriot parliament on Tuesday rejected - caused a rush to banks and withdrawal of money to avoid taxation.

In response to this situation, banks were closed, and will not open until tomorrow.