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HomeCyprus: An Insider’s Perspective
Posted by Larry Doyle on March 25th, 2013 11:59 AM |
News that Cyprus has negotiated a bailout of its banking system replete with massive haircuts for depositors with greater than EU100,000 and capital controls as well may have forestalled a meltdown within markets. Yet this small island nation faces a very uncertain economic future.
How might what unfolds there impact other nations in the EU if not elsewhere in the world as well? Will the bailout and associated bail-in of the Cypriot banking system ultimately be a deal which precipitates the departure of this nation from the Euro-zone?
Let’s navigate and get an insider’s perspective from Athanasios Orphanides, the former governor of the Central Bank of Cyprus, who was interviewed on Bloomberg Surveillance this morning: (more…)
What is Going on in Cyprus?
Posted by Larry Doyle on March 18th, 2013 8:23 AM |
News emanating from the Republic of Cyprus that depositors in its banks will likely be hit with a tax to support an EU bailout of this small nation is a warning signal that the financial system specifically and the world at large remains fraught with risk.
Some individuals within central banks and creditor nations may like to discount the impact of the taxing of depositors as no big deal. Additionally, I can already hear people asserting that Cyprus is a tiny nation with an economic GDP that is hardly statistically significant.
Should we disregard a tax on bank depositors that would relegate the topic of deposit insurance onto the garbage heap? At our peril. Let’s navigate. (more…)
