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Cyprus: too small to bail | Faisal Islam on Economics

More specifically Sarris was told that for 90 days, Berlin, Brussels and Frankfurt had been monitoring whether Cyprus had caused any contagion in the markets, and it had not. Therefore the suggestion to hit depositors generally was "take it or leave it".

Leave it, was basically referring to leaving the eurozone and returning to the Cypriot pound. Cyprus, in essence was too small to have to be bailed out fully.

There was also a debate about the extent of the levy on depositors. Cypriot politicians suggest the original move from its "EU colleagues" was a deposit cut of 40per cent, presumably to the deposits above €100,000. This was negotiated down to 9.9 per cent for deposits above €100k and 6.75 per cent below.

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Sun Mar 17th, 2013 at 03:54:06 PM EST

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