“Since November 2011, the CBC knew that providing liquidity to an insolvent institution was a breach of Article 123 of the EU Treaty and Article 121 of the Statute of the European System of Central Banks,” the report said. The CBC also knew, from the opinion expressed by the ECB, that the Management of Financial Crises Law was in breach of the aforementioned Treaties. However, the CBC had given its consent to its enactment by the House of Representatives on December 30, 2011.” “On October 28, 2011, Marfin’s available liquidity in euro and foreign currencies decreased to 4.9 per cent and 5.43 per cent respectively, compared with the minimum threshold of 20 per cent and 70 per cent respectively. The aforementioned include Emergency Liquidity Assistance, without which the ratio would have been negative,” The government at the time “followed a policy of avoiding the programme at all costs. By refusing the programme, Christofias’ government led the entire banking sector into captivity,” according to the report. cyprus-mail/2014/11/19/personal-political-agendas-bankrupted-cyprus-report-says/
Posted on: Wed, 19 Nov 2014 19:37:35 +0000
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