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It's not just the banks. Cyprus has a huge public debt[1]. The measure is also not the first of its kind in the EU - Italy did it in 1992 to cover a financial
by stefantalpalaru 14y ago
It's not just the banks. Cyprus has a huge public debt[1].
The measure is also not the first of its kind in the EU - Italy did it in 1992 to cover a financial emergency. They took "only" 0.6% from all bank accounts back then.
[1] http://www.cyprus-mail.com/cyprus/highest-annual-increase-government-debt/20130124 http://www.cyprus-mail.com/cyprus/highest-annual-increase-go...
- grannyg00se 14y agoAccording to wikipedia, Cyprus' public debt is less than Greece's, Italy's, USA's, Canada's, Germany's, and many others.
- omgyeah 14y agoYeah, but Cyprus, Greece, Italy, Portugal and Spain don't have any nukes ;)
- feee 14y agoCyprus' public debt took off after they were downgraded by Moody's and friends last year (meaning they were no longer able to borrow). This happened because the EU--in their infinite wisdom--wrote off a €4b loan (in bonds) Greece owed to Laiki (a Cypriot bank). So that's €4b the government lost overnight, and round about €10b it's "lost" since 'cos they can't trade. Public debt for 2011 was 71.1 of the country's GDP.[1] [1] http://www.centralbank.gov.cy/media/pdf/AnnualEconomicIndicatorsFeb13eng.pdf http://www.centralbank.gov.cy/media/pdf/AnnualEconomicIndica...