Cypriot finance minister: “We have exited the danger zone.”

BRIEF: Write a news story of about 200 words for the FT based on this material (sources at bottom of page). Today is 31 July 2013.
Time: 45 minutes including research. 

Cyprus’ banking sector appears to be entering recovery, as latest figures show better than expected progress in light of the country’s recent financial crisis.

The troubled state is expected to struggle with austerity measures aimed at reaching a budget surplus of 4 per cent of GDP in 2018. Estimates suggest that Cypriot GDP will fall 13 per cent over the next two years but initial progress is positive according to the finance minister Harris Georgiades.

“The worst is behind us as far as the banking system is concerned, we have exited the danger zone and we are into a stabilization zone.”

In March, Cyprus received an emergency €10bn loan from the Troika (EU, ECB and IMF) to help recapitalize the banking sector.

As part of the deal, the nation’s second largest bank, Laiki, was shut down whilst the largest bank, Bank of Cyprus, forced a 47.5 per cent haircut on uninsured depositors. The bailout fund was also conditional on improvements to anti-money laundering measures and fiscal discipline.

The IMF is currently in the process of publishing its first review of the bailout programme. Delia Velculescu, mission chief for Cyprus said: “This review found the programme to be on track, with authorities having made good progress towards meeting their objectives.”

ENDS

SOURCES:

This is from the official Cyprus News Agency.

“The worst is behind us as far as the banking system is concerned, we have exited the danger zone and we are into a stabilization zone,” Cyprus Finance Minister Harris Georgiades said at a workshop on hydrocarbons and sustainable development in Nicosia today.

And …

“This review found the programme to be on track, with authorities having made good progress towards meeting their objectives,” IMF mission chief Delia Velculescu said today during a conference call at the end of a mission to Cyprus.

Greek coalition locked in austerity talks

BRIEF: Read the text below (see bottom of page) and write a news story as if the news has just broken. Bring in key background and improve the language. 100 words, 20 minutes. Date is Friday, 21 September 2012.

“Greek coalition locked in austerity talks”
-by Tom Davies

Greece’s Finance Minister Yannis Stournaras is still engaged with party leaders over final changes to the country’s proposed spending cuts.

The coalition government is required to reduce the budget deficit by an additional 2.0-2.5 billion euros before the proposals will be accepted by the Troika (European Commission, European Central Bank and the International Monetary Fund).

There are still lingering concerns that further cuts will have a considerable effect on welfare. The Finance Minister said that “negotiations were difficult” and he was looking to minimize the social costs inflicted on the “poorer strata”.

ENDS

SOURCES:

‘Negotiations continuing’, Finmin says after coalition leaders meet

Friday, 21 September 2012 – Emerging from a meeting between the three party leaders supporting the coalition government, Finance Minister Yannis Stournaras on Thursday confirmed that negotiations with Greece’s creditors are continuing.

Stournaras said that a large part of the austerity package demanded of Greece had been agreed but there were still reservations surrounding certain of the proposed measures, chiefly to do with modernising the state, that had not yet been resolved.

“The negotiation is difficult. We are doing everything possible to minimise the social cost, especially for the poorer strata,” the minister said, expressing hope that the package of measures will soon be finalised.

(Previously the same day)

FinMin briefs PM ahead of coalition leaders’ meeting

Finance Minister Yannis Stournaras opined on Thursday that discussions for the finalization of the government’s package of austerity measures would continue for a few more days before final agreement is reached on the package 11.9 billion euro cuts in state spending, and estimated the shortfall between the measures proposed and those demanded by the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) Troika at 2.0-2.5 billion euros.

Stournaras was speaking to reporters after he and the government’s economic staff briefed prime minister Antonis Samaras of the finance minister’s talks with the Troika on Wednesday, ahead of a scheduled meeting of the leaders of the three parties — PM and New Democracy (ND) leader Samaras, PASOK leader Evangelos Venizelos and Democratic Left (DIMAR) leader Fotis Kouvelis — for continued talks for the finalization of the measures.

The finance minister is due to meet later at the ministry with main opposition SYRIZA officials Yiannis Dragassakis and Efklides Tsakalotos to brief them on the ongoing negotiations with the Troika.