For Cyprus, Painful Medicine to Swallow in Order to Avoid Collapse
Cyprus’ President Nicos Anastasiades leaves the European Council building in Brussels, March 25, 2013, after a meeting with European Council President Herman Van Rompuy and other officials to discuss a rescue package for the island. REUTERS/Sebastien Pirlet (Belgium – Tags: POLITICS BUSINESS TPX IMAGES OF THE DAY) – RTXXWFM
Cyprus has been going through a crazy week.
But the good news is that a banking collapse on the Mediterranean island has been avoided.
The bad news?
The new $13 billion bailout deal with the European Union involves significant pain.
Stavros Zenios is a professor of finance at the University of Cyprus in Nicosia.
He says the plan involves major changes for two of Cyprus’ leading banks: One will be shut down, another will be restructured, and anybody with more than 100,000 euros in those banks is going to help pay for the deal.
The story you just read is available to read for free because thousands of listeners and readers like you generously support our nonprofit newsroom. Every day, the reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you: We need your support to ensure we can continue this work for another year.
When you make a gift of $10 or more a month, we’ll invite you to a virtual behind-the-scenes tour of our newsroom to thank you for being with The World.