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Cyprus president recalls appointment of deputy Central Bank governor

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(Globalpost/GlobalPost)

Cyprus President Nicos Anastasiades on Tuesday withdrew the appointment of the deputy Central Bank governor, shortly after lawmakers complained that the Central Bank had failed to provide complete data about people who had transferred money out of the eastern Mediterranean island before a haircut on major bank deposits.

The haircut on deposits was decided by a Eurogroup meeting on March 16 as part of a 10-billion-euro bailout deal for Cyprus.

"A letter recalling and terminating the appointment of Mr. Spyros Stavrinakis has been sent to him," government spokesman Christos Stylianides said.

Stavrinakis was appointed by the former left wing president Demetris Christofias on February 4, just 13 days before presidential elections in which he did not contest.

The development underscored tensions between the center-right government and the Central Bank, including its governor Panicos Demetriades, also appointed by the previous president a year ago.

Cypriot banks were shut down for 13 days and strict restrictions on bank transactions were clumped after a haircut on large savings in Bank of Cyprus which may ultimately reach even 60 percent.

http://www.globalpost.com/dispatch/news/asianet/130410/cyprus-president-recalls-appointment-deputy-central-bank-governor