By Stelios Orphanides
DIKO chairman Nicholas Papadopoulos said that authorities should investigate why the Central Bank of Cyprus withheld information from the government which could have averted the bail-in of depositors in March 2013.
Papadopoulos, who was commenting in a telephone interview, said that both former Central Bank of Cyprus governor Panicos Demetriades as well as other officials who had direct knowledge of reservations expressed by a BlackRock official in an email-exchange with them in January 2013, about the capital requirements of the Cypriot banks, should be the subjects of a probe.
The central bank hired BlackRock in early 2012, to verify the conclusions of an exercise carried out by PIMCO on the capital requirements of Cypriot banks. PIMCO, which the central bank hired in September of the year 2012, said that Cypriot banks needed a total of €9bn in fresh capital.
“I don’t understand why they are protecting Demetriades or the officials who kept reforms secret,” Papadopoulos said. He added that the suspected that the reason no behind the lack of an inquiry has to do because authorities “are backing Demetriades and the central bank’s officials”.