Monday, March 25, 2013

Nobody's Safe! Eurogroup President Spooks Markets By Saying Cyprus Deal Is A New Template




Cyprus finally got a deal done with the EU to bail out its troubled banking system last night.  Instead of levying a nationwide "tax" on bank deposits, the plan follows a more typical restructuring approach, seeing shareholders, bondholders, and uninsured depositors in the country's two biggest banks take heavy losses in restructurings.

This way, Cyprus will avoid increasing its own public debt stock as much as it would have done if it were to take loans from the troika to finance the full amount of the bailout.


Read more: http://www.businessinsider.com/dijsselbloem-cyprus-deal-is-a-template-2013-3#ixzz2OZNNS2o9

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