Thu, Oct 2, 2014
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To help us provide historical reference let us go over the changes that ......................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

Banner

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. Legal - Court throws out lawsuits related to Fannie Mae, Freddie Mac profits, Insider case by SEC is a step removed from Herbalife itself, SEC grants Citigroup waivers, easing hedge-fund curbs[more]

    Court throws out lawsuits related to Fannie Mae, Freddie Mac profits From WSJ.com: A group of Wall Street investors on Tuesday suffered a blow in their attempts to sue the federal government over their treatment of the shareholders of mortgage finance giants Fannie Mae and Freddie Mac af

  2. Launches - Goldman Sachs Asset Management launches GS Long Short Fund, Western & Southern launching international hedge fund, Lansdowne Partners plans energy hedge fund, RBC Global Asset Management launches new RBC Funds (Lux) - Asia Ex-Japan Fund, PVE Capital latest credit strategy to launch on the Sciens managed account platform[more]

    Goldman Sachs Asset Management launches GS Long Short Fund From Marketwatch.com: Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Long Short Fund, which pursues high conviction investment ideas in global equity markets through a fundamental, bottom-up approach

  3. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is

  4. Opalesque Exclusive: Institutions eye private credit over traditional fixed income[more]

    Bailey McCann, Opalesque New York: Investing in private insurance, realty tax receivables, or investment-grade short-term accounts receivable may not spring to mind as a means of mitigating risk in a portfolio, but one firm, New York-based BroadRiver Asset Management is out to change all that. Th

  5. Short-term trading quant fund beats S&P since '09[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A relatively new multi-strategy, market-neutral quantitative hedge fund has managed to outperform the S&P500 and the HFRX Global since 2009. New Jersey-ba