Cyprus is going through tough time

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Cyprus is going through tough timeThe Cyprus government is trying to negotiate better terms and conditions for its bailout from the Troika. The major difference between position of the Cyprus Government and the Troika are in relation to the Cyprus government’s disagreements with privatisation of semi-government organisations such as the telecommunication company CYTA and also the use of profit from the gas and oil found in Cyprus territorial waters. The rating agency Fitch has recently downgraded the Cyprus rating by two notches to B from BB-. The rating agency predicts that the Cyprus government has to step in with providing a real help to the struggling banking sector which suffered substantial financial losses from Greek bonds’ haircut. An unexpected blow to the Cyprus government position has come from German allegations regarding a lack of financial transparency and loose anti-money laundering procedures in the Cyprus banking sector. German and other European national governments are voicing their concerns that Russian oligarchs, businessmen and criminals are holding money at Cyprus banks. The Cyprus government is in disagreement with those statements saying that its anti-money laundering system is up to a highest standard implemented in EU. Some European parliamentarians are suggesting to send more inspectors to Cyprus to examine those concerns.