Cyprus' 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

Cyprus' 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...