The board of the IMF and its representatives in Cyprus......

I totally agree with the Board of the IMF and their concerns regarding the economic situation in Cyprus over the next years. They expressed their concern regarding whether there will be growth in the economy by 2015 after the austernity measures that will be imposed in the next months/years. The IMF representatives in Cyprus have no clue of how markets work and this is proved by the fact that they did dot object on the initial idea for haircut on unsecured depositors .(if that idea was approved by the Cypriot parliament, the banking system in south European countries would have severe liquidity problems) .Furthermore the IMF representatives in Cyprus did not object to the Governors suggestion to open the banks after the eurogroup’s decision. Thanks to the government’s intervention the banks did not open and a disaster was avoided.

The IMF and Troika representatives in Cyprus, together with the central bank of Cyprus have no idea of the consequences from withdrawing liquidity from an economy that is leveraged 3 times its GDP at interest rates as high as 10% …….

Capitalising the banks does not mean that liquidity will increase in the real economy. Banks will not be able to supply the needed cash flow in the real economy. The liquidity of Banks will stay under pressure for many years….

Theory and practice are two different things……after the bail in , theoretically we will have solvent banks but practically we will have an insolvent economy……

Savvas Ttantis