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Stavros A. ZENIOS
University of Cyprus
Senior Fellow, The Wharton School, USA
Transparency and Accountability: Civil Society Calls for Reforms
We were wronged: Impact of Greek PSI on eurozone countries
!! Cyprus! Greece! Germany! Belgium! France! Portugal!! ! ! ! ! ! !%!of!GDP! 23.03! 11.65! 0.14! 0.56! 0.25! 0.25!Source:!EBA!and!author’s!calculations.!EBA!data!available!at!http://www.eba.europa.eu/documents/10180/15935/CY006.pdf!
!
We were wronged: ad hoc bail-in
¤ Directive 2014/59 issued in 2014.
¤ Article 44 -scope of bail-in: ¤ Exempts covered deposits
¤ Accrued salary
¤ Pension benefits
¤ Liabilities arising from the provision of goods or services that are critical to the daily functioning of the creditor.
¤ Capital controls
Cyprus bail-in detrimental to notion of common currency.
We were wronged: unfairness of the bail-in
¤ Bailed-in depositors of BOC contributed €3,806mil in cash and received shares at €1.00 per share.
¤ CPB contributed net assets €425mil and received shares at €0.503.
¤ Capitalization of BOC was €371,95mil and received shares at €20,66.
¤ 81.5% bailed-in depositors, 18.1% ex-CPB, 0.4% BOC shareholders.
¤ 82.7% bailed-in depositors, 9.2% ex-CPB, 8.1% BOC shareholders.
Fail the John Rawles “veil of ignorance” test.
Shadow economy
Shadow Economies All over the World Policy Research Working Paper 5356, The World Bank
Country % GDP
Switzerland 8.5
USA 8.6
Singapore 13
Ireland 12
Italy 21
Greece 24
Cyprus 25
EU-27 18.5
Political corruption
¤ GRECO Report of Council of Europe 2011
¤ Transparency in party financing
¤ Eight significant recommendations
¤ Only 2 partially complied by 2013
Don’t get mad, get even.
Transparency Now!
¤ Petition
¤ 5000 signatures
¤ Public pressure –TV, radio, newspapers, social media
¤ Elections challenge
Approved by Council of Ministers, February 2015.