Fri, Nov 28, 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To help us provide historical reference let us go over the changes that ......................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

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. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  3. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  4. CTAs , event-driven strategies lead hedge funds recovery in mid-November[more]

    Komfie Manalo, Opalesque Asia: November’s performance proves to be in sharp contrast to the previous month, with equities further consolidating their upswing last week, according to the latest Lyxor Asset Management’s Weekly Brief. CTA funds als

  5. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took