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Journalism of Courage
One of Cyprus8217;s most senior civil servants has likened his country8217;s treatment by Germany and the IMF to the shooting of a pigeon with an atomic bomb,saying they had destroyed an economic system that worked.
Christos Patsalides,permanent secretary of Cyprus8217;s Ministry of Finance,also described the international lenders as 8220;forces of occupation8221; that cared nothing for human rights.
Patsalides took part in the recent bailout negotiations between Cyprus and the European Union and International Monetary Fund.
He was speaking to a judicial inquiry which started an investigation on Friday into the circumstances that led to the economic meltdown of one of the euro zone8217;s smallest economies.
Patsalides told the inquiry that an 8220;unrelenting8221; team of technocrats had dispensed savage fiscal punishment to cash-starved Cyprus
8220;With the imposition of Germany and the IMF 8230; they shot a pigeon with an atomic bomb,8221; he said.
Many Cypriots saw their life savings vanish in March when authorities imposed losses on uninsured deposits in two of Cyprus8217;s banks 8211; Popular and Bank of Cyprus 8211; which were badly stung by an EU-sanctioned writedown on Greek sovereign bonds.
The depositor losses 8211; which also hit overseas depositors,many from Russia 8211; were part of Cyprus8217;s contribution ensure it received a 10 billion euro bailout from the EU and IMF.
Asked whether forcing losses on depositors was compatible with their individual rights,Patsalides replied: 8220;When you are dealing with forces of occupation,they don8217;t talk about human rights.8221;
Cyprus,which had modelled itself as an offshore financial services centre for lack of any other resources,now faces a grim future with its reputation in tatters and its economy deep in recession.
8220;They destroyed an economic system that worked,8221; Patsalides said. 8220;Yes,we have our shortcomings,but the magnitude of the punishment is far greater than the size of the problem.8221;
