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Cyprus News Agency: News in English, 13-02-28
CONTENTS
[01] Moody`s: Cyprus elections positive for bailout agreement
[01] Moody`s: Cyprus elections positive for bailout agreement
The outcome of the presidential elections in Cyprus have paved the way
for an agreement on Cyprus` rescue plan, rating agency Moody`s said,
noting however that the probability for a Cyprus default, remains "very
high" owing to bank recapitalisation needs that we expect to push general
government debt up to 150% of GDP.
In a comment following Sunday`s presidential elections, which saw leader
of the right-wing Democratic Nicos Anastasiades winning the presidency
garnering 57.48% of the vote, Moody`s noted "we expect the new executive
to begin talks with officials from the European Union and the IMF very
quickly."
"However, this progress does not lower the probability of default for
Cyprus (Caa3 negative), which is very high owing to bank recapitalisation
needs that we expect to push general government debt up to 150% of GDP,
as shown in the exhibit below," the agency said.
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