ALTHOUGH Greece's banks are closed this week due to the country's brinkmanship with its creditors, there is at least some good news to be found in the European Union's other Greek-speaking member state. After a five-year recession, Cyprus's economy has finally started to recover. Earlier this month, the International Monetary Fund stated that Cyprus made "strong" progress towards achieving the objectives set its bail-out worth €10 billion ($11.1 billion) in March 2013. That was when Cyprus became the first euro-zone country to limit the movement of capital out of the country. Just as in Greece, which has imposed capital controls alongside its week-long bank holiday, the bailout discussion was kicked down the road for the best part of a year.
On March 19th 2013, the Cypriot Parliament rejected the bailout because of the unpopular condition that all depositors, not just big ones, would pay to rescue the banks. The next day, Cyprus closed its banks. The European Central Bank (ECB) threatened to cut off emergency lending to Cyprus's banks within the week. But after six days, the Cypriot government agreed to a renegotiated bailout,...Continue reading
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