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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