Cyprus deposit grab sets bad precedent
Cyprus’ deposit grab sets a bad precedent. Money had to be found to prevent its financial system collapsing. But imposing a 6.75 percent tax on insured deposits – or even the 3 percent being discussed...
View ArticleAll Cyprus plan Bs look dreadful
The Cypriots have an expression: eninboro allo. It means: I cannot take any more of it. There was jubilation last night outside the small Mediterranean island’s parliament when every single MP either...
View ArticleCyprus will pay dearly for its sins
Cyprus will pay dearly for its sins. The Mediterranean island has committed many follies over the years – and is still making mistakes. The Cypriots seem congenitally inclined to overestimate their...
View ArticleCyprus must avoid capital controls
Imposing capital controls would be a historic mistake for Cyprus and the euro zone – even worse than the crass idea of taxing uninsured deposits. Non-cash transactions would be limited, while...
View ArticleCyprus deal best of a very bad job
Cyprus’ economy is going to suffer terribly in the next few years. Some of that is inevitable given how bloated the banking system had become. But the disastrous handling of the crisis, especially in...
View ArticleCyprus controls an “omnishambles”
Cyprus’ capital controls are an “omnishambles”. If the Argentine-style “corralito” really can be lifted in seven days, the damage could be contained. But that doesn’t seem credible. Extended controls...
View ArticleCyprus leaves banking union up in air
The Cypriot catastrophe shows just how far away the euro zone is from creating its much-touted “banking union”. There was no euro zone supervision of Cyprus’ big banks, no transnational approach to put...
View ArticleCyprus bank “resolution” a bad joke
The “resolution” of Cyprus’ banks is a bad joke. Resolution is one of the new buzzwords in financial regulation. The practice is supposed to stop taxpayers having to bail out banks, while imposing pain...
View ArticleCyprus is edging towards euro exit
Cyprus is no longer centre stage. Nicosia has agreed a 10 billion euro bailout deal with its euro zone partners and the International Monetary Fund. A visible bank run has been averted by stringent...
View ArticleGreece will probably pull through
Greece is not yet out of the woods. But there is a credible path that could lead the country back into the sunlight. That’s the main conclusion of a week I have just spent in the country. Although the...
View ArticleEurope should give Cyprus a hand
By Hugo Dixon Sunday marked the anniversary of Cyprus’ shock plan to raid the tiny island’s bank deposits. The envisaged tax, backed by the euro zone, covered all banks and all deposits, whether...
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