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Mar 24, 2013

Cyprus, lenders agree bailout deal: reports: MarketWatch Bulletin March 24, 2013.



By Sarah Turner, MarketWatch 
 
SYDNEY (MarketWatch) — Cyprus reached a deal early Monday that would enable it to receive funds from its European and international lenders to prop up its ailing banking sector and prevent its exit from the euro zone, it was widely reported. 

The cash-strapped island nation agreed a deal with the European Central Bank (ECB), the European Commission and the International Monetary Fund — collectively known as the Troika — to secure 10 billion euros ($13 billion) of aid, the reports said, citing European Union officials. 

Reuters reported that the proposed agreement would include the closure of the country’s second-largest lender, Popular Bank of Cyprus or “Laiki Bank,” with deposits under €100,000 to be shifted to the larger Bank of Cyprus. Deposits over €100,000 at Laiki would be frozen and used to pay off debts, it said.
Separately, Agence France-Presse reported that, as part of the agreement, the country will impose a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros in their accounts. 


Reuters Enlarge Image
The proposal then went before the European Union’s finance ministers, known as the Eurogroup, who gave their approval, according to Reuters and Bloomberg. 

The Eurogroup was due to make a statement shortly.
Investors were concerned that Cyprus wouldn’t be able to come up with a plan acceptable to the Troika before a Monday night funding deadline set last week by the ECB. 

In the worst case, many analysts said, Cyprus would become the first nation to leave the euro currency bloc.
The prospect of a deal quickly pushed the euro EURUSD +0.61%  higher, with the currency trading at $1.3045, up from $1.298 late Friday in North American action. 

Shares in Asia rallied after the reports of a deal, with Japan’s Nikkei Average JP:NIK +1.42%  trading more than 1% higher, while U.S. stock index futures showed gains, with those for the S&P 500 SPM3 +0.46% up 0.4%, while Nasdaq 100 futures NDM3 +0.47%  added 0.5%. 

Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.

Kerry Tells Iraq to Help Stop Arms Shipments to Syria: NYT | Global Update March 24, 2013.

The New York Times International Herald Tribune
March 24, 2013
Compiled 21:04 GMT

Global Update

TOP NEWS

Kerry Tells Iraq to Help Stop Arms Shipments to Syria

By MICHAEL R. GORDON and TIM ARANGO
Secretary of State John Kerry told Iraqi officials that helping to stop the flow of weapons from Iran is a condition for Baghdad's participating in discussions about Syria's future.

No Matter Outcome, Cyprus Crisis Is Blow to Business

By LIZ ALDERMAN
Hundreds of foreign companies have been drawn to Cyprus because of its low taxes and business-friendly banks. Suddenly, all bets are off.

Former President Returns to Pakistan

By SALMAN MASOOD
Pervez Musharraf ended more than four years in self-exile on Sunday, seeking a possible political comeback in defiance of judicial investigations and death threats.
Theater

Video: 'Matilda' Comes to Broadway

Patrick Healy interviewed the composer Tim Minchin about the challenges of bringing Roald Dahl's work to Broadway.
Sunday Review

News Analysis

Life After Oil and Gas

By ELISABETH ROSENTHAL
Wind, water and sun could power the United States. But will they?
WORLD

Jammed in Roman Caves, Ducking Syria's War

By C. J. CHIVERS
In Syria, the caves of bygone times have become essential once more, restored to modern use because their thick walls offer a chance of survival to a population under fire.

In Syria's Civil War, Doctors Find Themselves in Cross Hairs

By NEIL MacFARQUHAR and HALA DROUBI
More than 100 physicians have been killed and hundreds more have disappeared into Syrian jails in the last two years.

Russian Ties Put Cyprus Banking Crisis on East-West Fault Line

By ANDREW HIGGINS
With Cyprus's role as a provider of financial services for Russians, what began as another episode in a familiar narrative has escalated into a drama with geopolitical implications.
BUSINESS

The Attachment That Still Makes Noise

By PHYLLIS KORKKI
The stapler remains the one office tool that gives the satisfying click of a job that's done.

As Deadline Nears, Cyprus Scrambles to Devise a Bailout

By JAMES KANTER and LIZ ALDERMAN
European finance ministers and Cyprus officials face a Monday deadline, when the European Central Bank has threatened to cut off the financing that is keeping the country's banks from collapsing.

Tackling Concerns of Independent Workers

By STEVEN GREENHOUSE
The Freelancers Union, one of the nation's fastest-growing labor organizations, seeks to make health insurance and other benefits more affordable for independent workers.
TECHNOLOGY
Unboxed

Big Data Is Opening Doors, but Maybe Too Many

By STEVE LOHR
The dawn of mainframe computers offered huge technological benefits, but also challenged notions of privacy. Now Big Data is bringing similar expectations and concerns.

Finding Their Next Facebook

By JESSE McKINLEY
The Winklevoss brothers have moved on from their battle with Mark Zuckerberg and are more active than ever.
Technology

Plug and Play for Internet Connections

By JOHN R. QUAIN
The Audiovox Car Connection kit, which went on sale at the end of last year, tracks the car and monitors the driver.
SPORTS

France Itching to Take It to Spain

By ROB HUGHES
France, which has changed coaches twice, changed its hierarchy and changed much of its team, is on top of the group that Spain needs to win to qualify for the 2014 World Cup in Brazil.

Vettel Outruns Webber to Win Malaysian Grand Prix

By BRAD SPURGEON
Sebastian Vettel, the reigning world champion for the Red Bull team, won the race after he ignored team orders and stole the victory from his teammate Mark Webber with 10 laps left.

In Havana, Remembering a Minor League Championship

By BEN STRAUSS
For more than six seasons in prerevolutionary Cuba, the Sugar Kings were the Reds' Class AAA affiliate in Havana.
U.S. NEWS

Immigrants Held in Solitary Cells, Often for Weeks

By IAN URBINA and CATHERINE RENTZ
New federal data shows that on any given day, about 300 immigrants are held in solitary confinement at Immigration and Customs Enforcement centers, a practice psychiatrists worry is overly punitive.

Shadow of Roe v. Wade Looms Over Ruling on Gay Marriage

By ADAM LIPTAK
Even supporters of abortion rights believe the 1973 Supreme Court ruling went too far, too fast, a lesson opponents of same-sex marriage hope the court, hearing two cases, will take to heart.

Detroit Waits, Apprehensive, for Manager to Take Over

By BILL VLASIC and STEVEN YACCINO
A city whose finances are in a dire state loses the power to run itself, and everyone waits to see what will happen next.
OPINION
Opinion

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By ROBERTO ZURBANO
As the Castro era ends, a four-century legacy of racism lives on.
Op-Ed Columnist

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By THOMAS L. FRIEDMAN
President Obama paid a visit. Now what will the Israelis and Palestinians do?
Op-Ed Columnist

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By ROSS DOUTHAT
The current Democratic majority was forged in the backlash against George W. Bush's Middle East policies.