http://www.aljazeera.com/news/europe/2013/03/201333015222675305.html
Cyprus bank deposits could lose up to 60 percent of their savings of over 100,000. bank would give depositors shares worth 37.5 percent of savings and a further 22.5 percent will be held until authorities know what satisfies the terms of the bailout. The country is in deep debt and the authorities are going to great lengths to get money to satisfy a bailout plan offer from European banks.
The situation in Cyprus is certainly unfortunate and highlights that the situation in the Eurozone is not entirely stable. The magnitude of the levies is undoubtedly high but this seems to be the only way to solve the problems.
ReplyDeleteAt the same time, I can't blame the Cypriot citizens for wanting their money out of the banks given what seems to be coming. On the whole, the situation is more peaceful than what it could have been which is a good thing.