Cyprus probes 'tragedy' of banking meltdown
Photo Central Bank of Cyprus
(NICOSIA) - As anger mounts over the economic "tragedy" in Cyprus, money transfers came under scrutiny on Wednesday and the president pressed a criminal probe into how the banks were brought to their knees.
A parliamentary watchdog asked the central bank for a list of names of people who withdrew money from Cyprus just before a first "haircut" on savings was ordered on March 16, since when banks have remained closed.
And MPs of the socialist Edek party said they had given their consent for the central bank to lift bank confidentiality laws, disclosing their own transactions, and called on other politicians to follow suit.
"We believe it is imperative all politicians... as well as senior officials of the government and those in the financial system and institutions do the same because the people must know the truth," said Edek MP George Varnava.
The cabinet was to have met on Wednesday to appoint an investigator or commission to probe the meltdown of the Cyprus banking system as ordered by President Nicos Anastasiades.
But as the authorities struggled to have banks reopen on Thursday after a 12-day closure prompted by fears of a run on deposits, the government said it was postponing the session by a day.
Anastasiades had exploratory meetings to form the commission "to seek possible criminal, civil and political responsibilities for the great economic tragedy that has hit Cyprus," the government spokesman said.
"The government confirms its commitment to satisfy society's sense of justice and will determine those responsible for this unprecedented economic tragedy that Cyprus is experiencing," its spokesman Christos Stylianides said.
The powerful opposition party Akel, meanwhile, called for a demonstration on Wednesday night outside the presidential palace and EU offices against the bailout deal sealed by Anastasiades, who was elected president only last month.
His Akel-backed predecessor, Demetris Christofias, had held out for months against the harsh terms of the bailout for the island's heavily Greece-exposed and bloated banking system with its massive Russian deposits.
The deal struck with the European Union and the International Monetary Fund last Monday deals a major hit to investors and depositors in the state's biggest bank, the Bank of Cyprus, and effectively shuts down second-largest lender Laiki.
It has devastated the island's prized banking sector, a mainstay of the economy, and also inflicted huge losses in savings and jobs.
Under attack on the political front with charges of having folded to bullying by European countries led by Germany, which insisted that bank deposits take a major hit, Anastasiades has vowed to press ahead with the criminal investigation.
"I undertake... for the cabinet to appoint criminal investigators with a clear term of reference to find and attribute responsibility wherever it belongs," he said.