Monday, April 01, 2013

Family of Cyprus President Moved Money Out; Politicians Benefit from Loan Write offs


It turns out that money has been flowing out of Cyprus even earlier or 2 months prior to the crisis. (chart from Zero Hedge)

And part of such outflows could have been made by the family of the president of Cyprus.

From the RT:
A company owned by in-laws of Cypriot President Nicos Anastasiades wired €21 million from Laiki Bank to London days before the Eurogroup’s crisis-triggering levy proposal, claims a Cypriot newspaper. The president demands an investigation.

During two days, 12 and 13 of March, the company A.Loutsios & Sons Ltd., co-owned by Loutsios John, the husband of Nikos Anastasiadis’ daughter, Elsa, took five promissory notes worth €21 million from Laiki Bank. The money was then transferred to London, reported Cypriot newspaper Haravgi, affiliated to the communist-rooted AKEL party.

The withdrawal was fulfilled just three days before the Eurogroup meeting when euro finance ministers agreed a 10 billion euro ($13 billion) bailout for Cyprus.

The company, however, has firmly denied the reports.
So many people "knew" or anticipated the crisis.
Yet the report says that the President demands an investigation of his family’s action? Unless there is a feud, this would be like proverbial fox guarding the henhouse.

It also figures that the alleged beneficiaries of the recent loan write-offs have been the political class and their cronies.

From the Telegraph:
Lawmaker Mavrides, meanwhile, confirmed that a committee appointed by President Nicos Anastasiades would investigate a list published by Greek media of Cypriot politicians who allegedly had loans forgiven.

The Bank of Cyprus, Laiki and Hellenic Bank reportedly forgave millions of euros in loans over the past five years to lawmakers, companies and local company authorities, newspapers in Greece said.

The allegations would likely be discussed in parliament next week, Mavrides added.
Developing events in Cyprus just reveals that while the public gets squeezed, it pays to be a part of the insider or the political class, the well connected and the cronies.

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