CCTV Script 27/03/13
This is the script of CNBC's news report for China's CCTV on March 27, Wednesday.
Welcome to the CNBC Business Daily
EU leaders moved to calm concerns about Cyprus's rescue package.
At a press conference in Paris, the leaders of France and Spain said the bailout plan was unique to Cyprus, that it was an exceptional case rather than a template.
The comments come a day after the Dutch Finance Minister and Eurogroup Chief, Jeroen Dijsselbloem, suggested the Cyprus model could be replicated in other Euro Zone countries. He later retracted the comment.
[Sound on tape by French President Francois Hollande saying: This (Cyprus) was a solution which can only be exceptional, specific, unique, but which was needed nevertheless.]
[Sound on tape by Spanish Prime Minister Mariano Rajoy saying: I think that processes of bank recapitalisation have to be done, as we have always said, and I hope things are going in that direction, through the ESM (European Stability Mechanism). That's my position and I would not be in favor of a directive that said that these plans are to be put into place using people's deposits.]
But one analyst told CNBC, that he's certain that the Cyprus solution is a template and that it could be deployed again.
[Sound on tape by: Jim Rickards, Senior Managing Director, Tangent Capital Partners: This is a template, it doesn't matter how much the EU finance ministers deny it is a template. It is a template, it's not a new one. This is the way bank resolutions have been done over decades, we didn't do this in 2008, but historically we have, the question is will the template be used. That's the question.]
Meanwhile, Fitch placed the island on watch for a potential downgrade. The ratings agency says the shock from the systemic failure of its banks could damage the domestic economy and public finances.
It currently rates Cyprus at B - five steps into junk territory. S&P, Moody's already have it well into junk territory.
Hundreds of bank workers staged a protest outside the central bank headquarters... calling for the governor's resignation. This as the governor said that large depositors at the biggest bank - Bank of Cyprus -- could lose as much as 40% on their deposits.
The move had earlier prompted the resignation of the bank's chairman Andreas Artemis. Cyprus's banks are due to reopen Thursday and capital control measures are expected to be in place by noon today to prevent a bank run.
Speaking to CNBC earlier, analysts warn that the uncertainty in the Euro Zone and in Cyprus could continue to linger.
[Sound on tape by: Alastair Newton, Senior Political Analyst, Nomura: A lot of people are putting hope in gas, it's going to be a while before we see any gas coming out of the waters around Cyprus. I simply don't know how this Cyprus economy is going to be fix in quick time.]
[Sound on tape by: Edward Dempsey, Founder &CIO, Pension Partners: What we do not know is when these banks open up exactly how much liquidity do they have left? We've been hearing that people have been able to take money out through subsidiaries of those banks in other countries.]
Li Sixuan, from CNBC's Asia headquarters.