Cyprus cleric offers church assets to aid country

The head of Cyprus’s influential Orthodox Church says he will put the church’s assets at the country’s disposal to help pull it out of a financial crisis, after politicians rejected a plan to seize up to 10% of people’s bank deposits to secure an international bailout.

Speaking after meeting president Nicos Anastasiades today, Archbishop Chrysostomos II said the church was willing to mortgage its assets to invest in government bonds.

The church has considerable wealth, including property, stakes in a bank and a brewery. Yesterday’s rejection of the deposit tax has left the future of the country’s international bailout in question.

Cyprus needs €15.8b to bail out its banks and shore up government finances to avoid default and a potential exit from the European single currency.

The Cypriot parliament yesterday rejected a critical draft Bill that would have seized part of people’s bank deposits, with 36 votes against, 19 abstentions and no votes in favour. One deputy was absent.

Hundreds of protesters outside parliament cheered in jubilation and sang the national anthem when they heard the Bill had not passed.

Cyprus will now have to come up with an alternative plan to raise the money.

If it does not do so, it will not qualify for external rescue loans, the country’s banks face collapse and the country could go bankrupt.