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• Cyprus parliament to vote on savings levy on Sunday at 1400GMT – how are the numbers stacking up?
• Do you have deposits in a ‘peripheral’ European country? How you feeling about their safety?
• CypRIOTs?
• St Patrick’s Day is almost here
• UK coalition government tensions increase
• UK Press: more on the Cyprus bail out deal
• Nomura: China will “probably tighten this year”
• Bloomberg: Euro Finance Ministers Grant Ireland, Portugal Eased Debt Terms
• Italy: President tells Monti to stay until new government formed
• Euro zone finance ministers agree on Cyprus bailout

Cyprus parliament to vote on savings levy on Sunday at 1400GMT – how are the numbers stacking up? Posted: 16 Mar 2013 05:49 PM PDT Cyprus’s parliament is due to convene at 1400 GMT in an emergency session to discuss the proposed confiscation of a portion of deposits “with approval far from certain” (Reuters)  President Anastasiades’ right-wing Democratic Rally party has 20 seats in the 56-member parliament, He therefore needs support from other parties for the vote to pass. Marios Karoyian, head of the Democratic Party, junior partner in the coalition government did not say which way his party would vote (9 seats) Cyprus’s Communist party AKEL, is ‘likely to vote against the measure’ (19 seats) Socialist party, Edek called EU demands “absurd”  (5 seats) “…  we are against it,” said Adonis Yiangou of the Greens Party (1 seat) The European Party has 2 seats Sources: Reuters and Wikipedia There could well be some frantic international phone calls being made to Cypriot politicians from places like, oh, I don’t know … Russia? Might be a little ‘persuading’ going on.

Do you have deposits in a ‘peripheral’ European country? How you feeling about their safety? Posted: 16 Mar 2013 03:49 PM PDT The Economist asks the question: if you were a depositor in a peripheral country that looked like it needed more money from the euro zone, what would your calculation be? That you would never be treated like the people in Cyprus, or that a precedent had been set which reflected the consistent demands of creditor countries for burden-sharing? The chances of big, destabilising movements of money (into cash, if not into other banks) have just shot up. There’s a lot more at The Economist article-  well worth a read. The Cyprus bail-out: Unfair, short-sighted and self-defeating

CypRIOTs? Posted: 16 Mar 2013 03:39 PM PDT Confusion and anger over the ‘Stability Levy’ (looks like a PR firm got a gig out of the thing). One guy drove his bulldozer to town and parked it in front of the bank (lucky he didn’t park it in the lobby…). People scrambled to pull their money out of ATMs Restrictions put in place to stop depositors emptying accounts or moving money abroad Up to 60,000 British savers are to lose Treasury sources said that "deposits in UK subsidiaries and branches [ in the London branches of Bank of Cyprus UK and Laiki Bank] aren't affected" Depositors will receive bank equity as compensation Treasury reassures British savers over funds held in Cypriot banks’ London branches Up to 60,000 British savers face losing thousands each after £8.7billion EU bailout imposes tax on ALL bank accounts in Cyprus The Cyprus bail-out: Unfair, short-sighted and self-defeating (The Economist) Source: Mail Online

St Patrick’s Day is almost here Posted: 16 Mar 2013 09:30 AM PDT and, on a lighter note, we don’t need much of an excuse here at ForexLive to celebrate or post music, so here’s a little warm-up for tomorrow’s undoubted excesses. Enjoy.

UK coalition government tensions increase Posted: 16 Mar 2013 09:01 AM PDT I’ve been posting on this subject for a while and the cracks in the UK ‘s coalition are most certainly deepening, adding to concerns that the marriage may not last the distance until the general election in 2015. This latest spat on the journey to break-up is over a key vote on press regulation next week.

UK Press: more on the Cyprus bail out deal Posted: 16 Mar 2013 08:28 AM PDT Here’s what a couple of the UK’s papers have to say on this rather shocking bailout, which will be ratified by parliament on tuesday, but has rightly incensed its citizens. Interestingly though half the banks’ deposits are those of russian non-residents. Cypriot savers hit as eurozone agrees a10 billion euro bailout Cypriot deposits tapped ( ft.com – possibly gated but you can sign up for a free service of basic news ) Cyprus eurozone bailout anger

Nomura: China will “probably tighten this year” Posted: 16 Mar 2013 06:43 AM PDT Nomura says China will probably tighten policies this year to reduce the risks of a "systemic" financial crisis China is displaying the same three symptoms that Japan, the U.S. and parts of Europe showed before their respective financial crises, economists Zhang Zhiwei and Wendy Chen wrote in note dated yesterday. These signs are: a rapid build-up of leverage, elevated property prices and a decline in potential economic growth, they said. Nomura’s ‘base case’ is a government tightening of policies China May Tighten Policies to Contain Growing Risks, Nomura Says

Bloomberg: Euro Finance Ministers Grant Ireland, Portugal Eased Debt Terms Posted: 16 Mar 2013 06:43 AM PDT Bailout aid ‘rescue loans’ to Ireland and Portugal have had their maturities extended “in a show of support for their commitment to austerity” Details on the extensions will be worked out by the troika that oversees euro-area bailouts and the EFSF (European Financial Stability Facility) Euro Finance Ministers Grant Ireland, Portugal Eased Debt Terms

Italy: President tells Monti to stay until new government formed Posted: 16 Mar 2013 06:43 AM PDT President Georgio Napolitano to begin consultations with party leaders on Wednesday to see a workable majority can be formed in parliament ” … the government remains under the authoritative leadership of Mario Monti until a new government is formed,” Napolitano said in a statement.

Euro zone finance ministers agree on Cyprus bailout Posted: 16 Mar 2013 06:42 AM PDT 10 billion-euro rescue plan for Cyprus Levy on bank deposits to raise almost 6 bln euros The deposit levy is set at 9.9 percent on bank deposits greater than 100,000 euros Set at 6.7 percent on anything below that Takes effect on Tuesday after a bank holiday on Monday More: Cyprus Bank Deposits to Be Taxed in $13 Billion Bailout Savers bear brunt of unprecedented Cyprus bailout Cypriots stunned by forced savings cuts

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