Tue, Jun 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Ikos's Elena Ambrosiadou asks: "Has anyone learnt anything from the recent Cyprus maelstrom, and will it make a difference?"

Friday, April 05, 2013

amb
Elena Ambrosiadou
This piece was provided by Elena Ambrosiadou, chief executive officer of Ikos Asset Management.

Cyprus is in the middle of a financial maelstrom - where did it come from and what needs to be done about it now? Cyprus is the third smallest Euro area economy (0.2% of Euro area GDP). The total debt to GDP ratio reached 90% as of 2012, rising from 60% during the last presidency. The country joined the Euro in January 2008. The Russian business community which is well established in Mon-aco, the UK, and Cyprus has contributed to the total level of foreign deposits in the region. 30-45% of total bank deposits in Cyprus are held by non-Cypriot residents including Greek residents and 80% of those are non-EU. The high level of deposits was exploited by the banks and the Cypriot private sector became one of the most leveraged in Europe with a ratio of 130% household loans-to-GDP as recorded by the end 2011. The financial services sector grew to correspond to 40% of the country’s GDP, contributing €8 billion to the national budget.

Over time, the Central Bank of Cyprus and the Cyprus Securities and Exchange Commission have applied stringent capital adequacy rules to banks and Cyprus Investment Firms (recently tightened further in line with EU regulations). Given these measures, how was it possible to overextend with such dire consequences?

To help us provide historical reference let us go over the changes that ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Hedge funds panic over Greece[more]

    Komfie Manalo, Opalesque Asia: Some investors are in panic mode as Greek Prime Minister Alexis Tsipras announced Sunday night that the banks and the stock market would be closed Monday, said

  3. Alternative investment industry could grow to $13.6tln in five years[more]

    Komfie Manalo, Opalesque Asia: Leading auditing and advisory group PwC said that the global alternative investment industry, which includes hedge funds, private equity and real assets, is set to increase to $13.6tln within the next five years. "Be

  4. Qbasis gets $200m-plus investment in 'black swan' hedge fund[more]

    From Reuters.com: A hedge fund that more than doubled clients' money during the 2008 financial crisis has attracted more than $200 million from an investor aiming to cash in on fresh ructions in global markets. Qbasis Invest has secured the investment from Britain's Omada Capital, Florian Wagner, wh

  5. Outlook - Jim Rogers: Turmoil is coming[more]

    From Peakprosperity.com: Two years since his last interview with us, investor Jim Rogers returns and notes that the risks he warned of last time have only gotten worse. In this week's podcast, Jim shares his rational for predicting: increased wealth confiscation by the central planners

 

banner