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What about the bond holders though? If the banks go under they lose their money as well, it seems to reason they should be taking a hit as well, not just the d
by Game_Ender 14y ago
What about the bond holders though? If the banks go under they lose their money as well, it seems to reason they should be taking a hit as well, not just the depositors.
- justincormack 14y agoThere are no more than a few hundred million in bonds. The banks were funded by deposits not bonds. The junior bonds probably will be wiped out but the amounts are tiny and there are no details released yet.
- aristus 14y agoThat does change things. Debt restructuring is a bit like musical chairs. If there was truly no group left to haircut, to avoid default this had to be done. On the other hand, that €10B euro could have come from somewhere outside the country, especially since it was the forced Greek bond haircut that caused the crisis. I find it hard to believe that northern Europe isn't taking advantage of this crisis to increase their influence.
- justincormack 14y agoIt could have been a gift not a loan. But Europe is not willing to do this, partly as it would set a precedent, partly as half the depositors in Cyprus were not Europeans, partly for other reasons...
- justincormack 14y agoApparently more than that EUR 1.7bn, which is enough to make a difference to the depositors. What seniority these are I do not know.