ROC to default within 12 months

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
29/07/2011 18:41

Cyprus will default within 12 months, says Stuart Thomson, the chief economist at Ignis Asset Management.

Thomson, in a statement today, says the decision by Moody’s rating agency to leave Cyprus with an investment grade rating is “too kind” as he predicts it will be downgraded to junk in the near future.

Moody’s Investors Service downgraded Cyprus’s government bond ratings to Baa1 from A2 on Thursday, based on worries over the country’s fiscal position, fractious political climate and the exposure of its banks to Greece

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
29/07/2011 18:42

Thomson also expresses concern over Cypriot banks and their exposure to Greece, describing them as “highly exposed to the Greek crisis”.

He cites an observation made by Moody’s that the banks’ assets are 600% of GDP and a substantial proportion of these loans have been provided to Greece.

Thomson describes Cyprus’ previous efforts to build up financial assets as “an unsustainable ponzi scheme, similar to Ireland”.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
29/07/2011 18:43

Commenting on recent proposals outlined by Wolfgang Schäuble, theGerman finance minister, Thomson says Cyprus could prove to be the first test of the policy that eurozone members seeking funding surrender some sovereignty.

“Cyprus will be an obvious test case of this new hardline policy. It will be the first sign that volatility is being transferred from interest rates to politics. We believe that this will ultimately be bearish for the euro,” he warns.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
29/07/2011 18:44

http://www.fundweb.co.uk/1035406.article?cmpid=14001&email=true

CJtill


Joined: 02/05/2008
Posts: 836

Message Posted:
29/07/2011 18:57

The bankrupt Greeks seemed to have dragged the Cypriots to the edge of the financial precipe, and the word is that the TCs want to re-unite and adopt the Euro.....

Lemmings and Cliffs come to mind.

Michael

martinD41


Joined: 06/09/2010
Posts: 3001

Message Posted:
29/07/2011 19:01

msg 5.......More like" Hari Kari " if you ask me,

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
29/07/2011 20:48

Lordy, some of the expats sound as if they're 'worried' .. how many of you were around during the last TR banking crisis at the end of the noughties... ;)



By being IN the club Cyprus ( Rep of ) will get 'rescued' ....



Perhaps those TC 'lemmings' knew something !!!

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
29/07/2011 20:51

Could it be based on THIS ? ;)



http://www.bbc.co.uk/news/world-europe-14346325

Turkey: Military chiefs 'resign en masse'

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
29/07/2011 20:51

Bill when the double mortgages and the loans that are not being repaid will bring them down sooner

That's assuming that assuming that they will confess to the true position

Oh sorry not genetically possible look at the homeland )

newscoop


Joined: 23/12/2007
Posts: 2197

Message Posted:
29/07/2011 21:03

6M;



I was around in December 1999 and in 2001.



There is no correlation between those events and whats happening in the ROC.



The banking sector is between 6 and 9 times GDP, you should appreciate this is the economics of a madhouse.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
29/07/2011 21:05

Newscoop. Spot on.

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
29/07/2011 21:06

Wanderer



if you visit Athens, after living in Limas(s)ol for some time you would be shocked to see how DIFFERENT GCs look from Greeks - they don't even sound the same - Greek is much softer...



I thought you'd like to know.. as you sound akin to a supporter of Enosis...and you wouldn't find too many of them right now ;)

GinaC


Joined: 26/11/2010
Posts: 372

Message Posted:
29/07/2011 21:26

"I thought you'd like to know.. as you sound akin to a supporter of Enosis...and you wouldn't find too many of them right now"



Really Mark, when did you last visit the South, define many?

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
30/07/2011 09:45

Hi Gina, back in the 1950's over 90% of the GCs wanted union with Greece - and to be free of the UK..



50 years later the 'rump' RoC was the only nation of the 10 joining states that didn't even bother to have a referendum on joining the EU - such was the overwhelming support but being a member.... some even said they achieved Enosis with Greece on joining the EU.



Now, with all Greece' financial woes and a say in Europe GCs are happy to be "Hellenically" Greek but Cypriot...



When I hear a TC or ex-pat living in the 'north' referring to 'Greeks' - meaning GCs - I wonder if they give a thought to the fact they are paying the minority of die-hard enosis supporters ;) !



BTW I miss Zoots ;)

DutchCrusader



Joined: 19/05/2008
Posts: 11281

Message Posted:
30/07/2011 09:51

@ msg 14, 6xm: (...) back in the 1950's over 90% of the GCs wanted union with Greece (...)

▶ The wish to unite with Greece ("Enosis") is much older in Cyprus. Many conspiracies (99% inspired by the local church) are known during the Ottoman rule of Cyprus.

mmmmmm



Joined: 19/12/2008
Posts: 8398

Message Posted:
30/07/2011 09:57

re 10 True, Hans, I was giving an example of how much things have changed !



re msg 10



>>I was around in December 1999 and in 2001.

There is no correlation between those events and whats happening in the ROC. <<



I agree no correlation - The Turkish and 'TRNC' banks failed and there was a huge run on the Tl... and MEGA inflation..

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
30/07/2011 10:21

If the politicians were to give back the money they have either stolen or taken in bribes, it could well make a difference.

Troodo


Joined: 12/06/2008
Posts: 1002

Message Posted:
30/07/2011 10:40

If the politicians were to give back the money they have either stolen or taken in bribes, it could well make a difference.

Wait until the toxic loans to builders comes to light, then the sh// will really hit the fan. Still they can always use the 16, 7 billion that disappeared from Yugoslavia.