Cyprus banks mess! will Russia or the EU help?

The financial problem of Cyprus, this small island, is basically that it’s heavily exposed to Greece’s banks, in other words, the Cypriot banks bought Greek bonds.

When Greece banks were no longer able to pay and defaulted on their bonds (some say with EU blessing), this pushed Cyprus to bankruptcy!

Russians have $30-40 billion in Cyprus banks, but would that motivate Russia, to throw a couple more, for now the answer is no, but we’ll see.

the EU proposal to get 10% tax on deposits was rejected, and it even worsened the situation because it further destabilized unstable banks, now every sane person will try to take his cash from the bank.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s