4 ms·

It's unfair to only blame the Cypriot leadership. "bank customers would pay a levy of 6.75% or 10% on their bank deposits... The EU and IMF have demanded the l

It's unfair to only blame the Cypriot leadership. "bank customers would pay a levy of 6.75% or 10% on their bank deposits... The EU and IMF have demanded the levy in return for a 10bn-euro ($13bn; £8.6bn) bank bailout." [1] We don't really know which individual came up with the idea... but the EU were okay with the original plan to take money from those with <100k as part of a bailout, as long as the Cypriots got it passed locally as a "tax" to avoid any potential legal issues with the EU directive on protecting deposits. [1] http://www.bbc.co.uk/news/world-europe-21824495 http://www.bbc.co.uk/news/world-europe-21824495

claudius 14y ago
No, it is completely fair to only blame Cyprus (the people obviously in extension of the leadership), given that Cyprus got itself into this mess and needs European money to find a way out. Expecting them to contribute[0] at least a little bit to the bailout is perfectly fine, and it is not the EU’s job to police how Cyprus procures said contribution. [0] This is true even more since contrary to Greece or Ireland, there’s no indication whatsoever that Cyprus will ever pay back 10 bn €.
- kyriakos 14y ago
  Its not Cyprus to blame for EU's decision to write off the Greek debt about a year ago. Cyprus economy and banking system went from healthy to sinking boat overnight because of that decision of the eurogroup which it didn't have control over. Now the eurogroup came back to penalize Cyprus for not having that money that eurogroup itself took away.
  - bitcartel 14y ago
    Just 18 months ago, the EU said that Cypriot banks were healthy and had passed EU-wide bank stress tests. http://www.cyprus-mail.com/cyprus/cyprus-banks-pass-eu-stress-test/20110716 http://www.cyprus-mail.com/cyprus/cyprus-banks-pass-eu-stres... Many think the bank stress tests are a joke and only exist to raise investor confidence. If true, then those people so quick to criticise Cyprus, might soon find themselves sharing the same fate.

claudius 14y ago

No, it is completely fair to only blame Cyprus (the people obviously in extension of the leadership), given that Cyprus got itself into this mess and needs European money to find a way out. Expecting them to contribute[0] at least a little bit to the bailout is perfectly fine, and it is not the EU’s job to police how Cyprus procures said contribution. [0] This is true even more since contrary to Greece or Ireland, there’s no indication whatsoever that Cyprus will ever pay back 10 bn €.

kyriakos 14y ago
Its not Cyprus to blame for EU's decision to write off the Greek debt about a year ago. Cyprus economy and banking system went from healthy to sinking boat overnight because of that decision of the eurogroup which it didn't have control over. Now the eurogroup came back to penalize Cyprus for not having that money that eurogroup itself took away.
- bitcartel 14y ago
  Just 18 months ago, the EU said that Cypriot banks were healthy and had passed EU-wide bank stress tests. http://www.cyprus-mail.com/cyprus/cyprus-banks-pass-eu-stress-test/20110716 http://www.cyprus-mail.com/cyprus/cyprus-banks-pass-eu-stres... Many think the bank stress tests are a joke and only exist to raise investor confidence. If true, then those people so quick to criticise Cyprus, might soon find themselves sharing the same fate.