Eurogroup meeting: extracts from the press conference

Type: News   Reference: i-077126   Duration: 00:04:54  Lieu: Brussels, Belgium - Council / Justus Lipsius
End production: 25/03/2013   First transmission: 25/03/2013
Cyprus and the Eurogroup reached deal on 25 March, which will save it from financial meltdown and keep its ECB lifeline open. The €10bn bailout deal with international lenders will avoid the controversial levy on bank savings but take a bite out of bigger deposits in Cyprus's two largest banks.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Arrival of the speakers 00:00:08
00:00:13 SOUNDBITE (in English) by Jeroen Dijsselbloem: The Eurogroup has reached an agreement with the Cypriot authorities on the key elements necessary for a future macroeconomic adjustment programme. As you are all aware it has been a particularly difficult road to get here, however this agreement is supported by all euro area Member States as well as the three institutions. 00:00:23
00:00:36 Cutaway 00:00:04
00:00:40 SOUNDBITE (in English) by Jeroen Dijsselbloem: The adjustment program will ensure financial stability, balance, growth and some public finances with a sustainable public debt. I will highlight just a few key figures of the agreement: the program will be based on ambitious measures in areas of fiscal consolidation, structural reforms and privatization. The authorities will also take decisive action to safeguard the stability of financial sector including bank resolution and deep restructuring measures concerning the two largest banks. A levy on deposits across the whole banking sector can and will therefore be avoided. More generally there will be a downsizing of the financial domestic sector to reach the EU average by 2018. I would like to emphasize that none of these measures will affect deposits below 100.000 Euros. Should be no doubt about that. We reaffirm today the importance of fully guarantying these deposits in the European Union. 00:01:11
00:01:51 General view of the meeting 00:00:04
00:01:55 SOUNDBITE (in English) by Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro: the agreement was based in a joint proposal of the three institutions, the Commission the ECB and the IMF. Thee commission has been working very hard for many month to facilitate sustainable solutions to help Cyprus. In fact I recall this financial assistance program in November 2011 with the finances minister of Cyprus because of the conscience of fiscal sustainability and financial sustainability. 00:00:41
00:02:36 Cutaway of journalists 00:00:05
00:02:41 SOUNDBITE (in English) by Olli Rehn: The Commission will do everything possible to alleviate social consequences of this economic shock and help to protect the most vulnerable people. Cyprus is part of the European Family and Europe will stand by the Cypriot people. 00:00:21
00:03:02 Cutaway 00:00:04
00:03:06 SOUNDBITE (in English) by Christine Lagarde, Managing director of the International: I would like to salute the courage of the Cypriot authorities who have decided to take on the challenge of putting in place and implementing in the days to come something which is going to actually, number one: ensure deposits, number two: treat the two problems banks and limit the treatment to those two problem banks, therefore restoring trust on banking system outside of these two ones that will be treated. And number three: allocate the bargain between the Europeans on the one hand, the Cypriots on the other hand within the Cypriots between the taxpayers on the one hand and the un-ensured depositors on those two banks, on the other hand. 00:00:59
00:04:05 Cutaway of a photographer 00:00:03
00:04:08 SOUNDBITE (in English) by Klaus Regling, ESM Managing Director: The ESM financing will mainly go to the budget of Cyprus and the disbursement will be as usual on a quarterly basis following the normal reviews by the Troika. We will now act swiftly and prepare in a few days the full program documentation which will specify the terms and the conditions of the support to Cyprus. This will be followed by a political process including the national approval procedures that should be completed by mid-April. 00:00:41
00:04:49 Departure of the speakers 00:00:05
00:04:54 END 00:00:00
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