Unemployment in Cyprus will increase 30%

Dani Mohammad Dahwilani

Sindonews.com -analysts predict bailout deal on Cyprus would lead to a loss of investor and thousands of jobs. Where the number of unemployed would increase to 30 percent.

Professor Hari Tsoukas, an analyst of business in Europe, unemployment in Cyprus tend to rise at least doubled from 14 percent to at least 25 percent and may be up to 30 percent. "This is a big challenge now facing the people of Cyprus," he said, as reported by Skynews, Tuesday (26/3/2013)

During the week-long people have been rationed, and some of them withdraw from cashpoints. Banks have been closed since last March 16. However President Nicos Anastasiades recently will reopen the bank on Thursday (28/3/2013).

Anastasiades insisted, it would perform some transaction restrictions to prevent the flow of big money out.

According to Fiona Mullen, an economist who specializes in Cyprus, this means it is difficult for the company to pay salaries and buy goods. In the short term this crisis will be felt importers of food and medicine.

"Unemployment has now been reached 15 percent will increase as a result of the closure of Laiki bank (the second largest bank of Cyprus), be 17.5 percent. In fact, going to 20 percent within three months and 26 percent in one year's time, "said Mullen, as reported in the previous Sindonews .

While the former Governor of the Central Bank of Cyprus Afxentis Afxentiou, argues, the effect can last up to a decade.  "Cyprus has undergone a big hit and the standard of living we will spiral. Although the economy may recover in two to three years, our standard of living at least takes 10 years to get back, "he explained.

(dmd)

Finance; Investment; Business; Economics

Finance; Investment; Business; Economics

Cyprus sentiment again for Wall Street experienced a correction

J Erna

Sindonews.com -stocks on the Wall Street stock exchange on Thursday local time trading ended following the Oracle Corp. earnings rectified that far from expectations. In addition, sentiment about the issue concerns Cyprus in European zone also became the trigger.

shares of Oracle Corp. (ORCL.O) slumped 9.7 percent to USD32,30, and became the biggest correction in the Nasdaq, a day after a disappointing revenue doubled due to sales under the target.
It was the biggest decline since December 2008.

The greater the stock correction at the end of the session following concerns over the financial condition in Cyprus are increasing. This happened right before the credit rating becomes junk level trimmed Cyprus.

The European Union gives the limit for Cyprus until Monday next week to get a Fund of funds untukmenyiapkan bailout of 10 billion euros or face a collapse of the financial system and possibly out of European contention.

"I think the way is not going to be a quick solution to cope with the situation and it is not easy to predict what will happen. The uncertainty will make investors sell stocks, especially in a market that has experienced a rise in two weeks, "said Wedbush Securities Equity Trading Director, Michael James, as reported by the Reuters, Friday (22/3/2013).

Investors fear a collapse of the banking system in Cyprus will tighten credit in the European zone and into other hambata to get out of the economic crisis. This adds to the concern, the u.s. economy data also cannot reach the target expected.

While The Dow Jones industrial average (DJI) was down 90,24 points or 0,62 percent to,49, The Index 14.421 Standard & Poor 500 (SPX) dropped 12,91 points or 0,83 percent to 1.545,80, and Nasdaq Composite Index (IXIC) lost 31,59 points or 0,97 percent to 3.222 .60.

(rna)

Finance; Investment; Business; Economics

Finance; Investment; Business; Economics