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Greek businesses to suffer from 'crippling' Cyprus bailout

Head of the National Confederation of Greek Commerce critical of Eurogroup deal

A protester holds a Cypriot flag next to a Greek flag during a rally in support of the Cypriot people in Athens, 19 March 2013 (Reuters) A protester holds a Cypriot flag next to a Greek flag during a rally in support of the Cypriot people in Athens, 19 March 2013 (Reuters) At least 1,600 Greek businesses - from shipping, retail to tourism - will suffer from the Cyprus bailout deal announced on Sunday after a showdown between Brussels and Nicosia, according to Vasilis Korkidis, head of the National Confederation of Greek Commerce (ESEE).

“The tragic situation in Cyprus will certainly have immediate effects on the Greek market, since a large part of the domestic businesses maintain close ties with Cypriot companies,” Korkidis said in a statement  on Tuesday. He was particularly critical of the capital controls and the impending haircut on large deposits (over 100,000 euros) expected to be more than 40%.

Greece's exports to Cyprus exceed 1bn euros annually and the country is Cyprus’ biggest trade partner, followed by the United Kingdom and Germany.

According to Korkidis, the Eurogroup’s Cyprus deal establishes new, severely punitive rules for countries needing emergency aid in the future.

He also slammed the Eurogroup deal (which he called the "German plan" to stress the key role played by German Chancellor Angela Merkel in the negotiations) for “crippling” Cyprus. He said the deal is “tragic” because it “sentences” Cyprus - the country’s markets and economy - to a long period of recession and debt.

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Economy
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National Confederation of Greek Commerce (Esee)
Cyprus
Business