European policy makers are weighing how far to push Cyprus after lawmakers in the Mediterranean nation rejected an unprecedented levy on bank deposits, throwing into limbo a rescue package designed to keep it in the euro. Stocks and the euro gained as
Avoiding moral hazard proved to be disastrous when Lehman Brothers failed. Will Cyprus be similar?
The politicians and financiers are scrambling to agree on a deal that would bail out Cyprus and its banks, which are badly in need of a $20 billion loan. Possible solutions include nationalizing pensions, selling a bank to Russia, or taking money out
If the lawmakers want to reject the Eurogroup's plan, they know what they must do.
The decision to force bank depositors in Cyprus to contribute towards a bailout could hurt other nations and the market's rally, analysts warned.
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