Financial assistance to Cyprus:

Type: News   Reference: 93763   Duration: 00:03:59  Lieu: Brussels, Belgium - European Parliament
End production: 06/05/2013   First transmission: 06/05/2013
- extracts from the exchange of views with Jeroen DIJSSELBLOEM, President of the Eurogroup EP Committee on Economic and Monetary Affairs Financial

Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Exterior shot of the European Parliament, Brussels, Belgium (1 shot) 00:00:05
00:00:10 Interior, Arrival and atmosphere before the opening, (3 shots) 00:00:14
00:00:24 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "Before coming to a judgment on the Cypriot macro adjustment programme it is important to keep in mind the truly exceptional circumstances in Cyprus that ultimately led for its request for assistance. In the run up to this crisis the Cyprus financial sector has been allowed to grow in an unsustainable fashion to a disproportional size compared to the Cyprus GDP, that left the country particularly vulnerable to financial market turbulence and it's broadly of the serious imbalance nature of the Cypriot economy." 00:00:38
00:01:02 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "Simply patching up the distortion in the Cyprus economy would have been in no ones interest, the least at all for the Cyprus people. The new Cyprus government appointed after the election in February fully understood this and after some weeks of intensive negotiation we were able to reach an agreement on the key elements necessary for a future macro economic adjustment programme in March." 00:00:29
00:01:31 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "I'm proud of the solidarity that Europe member states have shown towards Cyprus by providing these loans, loans which are critically set at a level that will enable Cyprus to repay them. The Cypriot crisis does underscore the need to press ahead with the Banking union. A Banking union that strengthen Bank supervision and that delivers a genuine crisis related tool box." 00:00:26
00:01:57 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "The alarm bell in the future will be sounded up more early, immediate action will be taken and the worst can be avoided. So we must now turn our attention to establishing an European approach to bank resolution. To do this fairly and efficiently we must make sure that those who have profited from risks taken by banks also bare the costs, that is not only a fair approach but will also contribute to a sustainable healthy financial sector in the future." 00:00:31
00:02:28 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "In short I believe the macro economic adjustment programme provides Cyprus an opportunity to get its economy back on track, which is not going to be easy, I fully realise that and I also believe that the momentum should not be lost in improving our oversight and resolution mechanism to effectively and efficiently nip potential systemic threats." 00:00:25
00:02:53 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "The Russian involvement has now, the Russians have said, you the Europeans must reach a programme, a memorandum, and we can see what we can do. - Luckily we now have reached that point an agreement has been reached between the Cypriot government and the Russian government to postpone the paying off of this loan by 2 years and a reduction of the interest rate from 4.5 to 2.5 percent. So the Russian involvement is now being secured in a positive way." 00:00:34
00:03:27 SOUNDBITE (English): Jeroen DIJSSELBLOEM, President of the Eurogroup: "The uncertainty that there is both deposit holders as for investors will have to be dealt with as soon as possible by finalising as soon as possible the recovery resolution directive." 00:00:16
00:03:43 cut away shots, (5 shots) 00:00:16
00:03:59 END 00:00:00
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