Cyprus Deal Has 100M Euros Penalty Clause

Cyprus Deal Has 100M Euros Penalty Clause

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2013_04_25_09_24_09__6e0910141f9d465fb09ef31c030c39ddIf Cyprus breaks its deal with international lenders about to put up a 10 billion euros ($13 billion) bailout, the government will have to pay a 100 million euros ($130 million) fine, according to its memorandum of agreement.

With Parliament set to vote on the terms, that include austerity measures and confiscation of up to 80 percent of bank accounts over 100,000 euros ($130,000) the Ministry of Economics requested for the “very urgent nature of the case” to be taken into account. Attorney-General Petros Kliridis underlined that “the financial support depends on the fulfillment of the Memorandum”.

It also means that the clause could be activated if Cyprus repays the loan earlier than the 20 years alloted.

 

  • Cypriot

    The EU is a joke.

  • supafeckinmingster

    But it’s not the kind of joke that makes you laugh and feel generally positive, instead it’s the kind of joke that makes you want to go to Brussels or Strasbourg and bury an axe into the skull of an EU technocrat.