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Monday, March 25, 2013

Phew! Cyprus will be "saved", at last

About what has happened on the Cyprus bail-out, three posts are necessary and sufficient:

For a really good evaluation of the power play, John Cassidy at the New Yorker blog thinks that "The E.U. and Germany Are Right to Bully Cyprus".
Charlemagne of The Economist says "A better deal, but still painful"
(the) .."deal that is similar to the solution first proposed by the IMF, which was backed by Germany but rejected by Cyprus (and to some extent by the European Commission). 
At one point, participants said, Mr Anastasiades threatened to resign, even to pull Cyprus out of the euro zone. In the end, he relented. The European leaders, fed up with Cyprus’s tactics, had refused to yield. 
"Perhaps the biggest question is this: once the banks have been cleaned up and shrunk, where will Cyprus find economic growth? The promise of offshore gas deposits is still too uncertain, and tourism may well decline if Russians suddenly find the island to be less hospitable to their money."

Joseph Cotterill at FT Alphaville  is a must read for background and developments,  

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