Cyprus’ president has asked eurozone leaders for a complete revamp of his country’s €10bn bailout, warning Nicosia may not be able to meet the rescue’s current terms because it has harmed the country’s economy and banking system even more than expected.
In a letter sent last week and obtained by the Financial Times, Nicos
Anastasiades wrote that the restructuring of the country’s two largest
banks, the centrepiece of the March rescue, was “implemented without
careful preparation”, wiping out the working capital of many Cypriot
companies and requiring unprecedented capital controls that were suffocating the island’s economy.
economy is driven into a deep recession, leading to a further rise in
unemployment and making fiscal consolidation all the more difficult,” Mr
Anastasiades wrote to the heads of three EU institutions and the
International Monetary Fund. “I urge you to review the possibilities in
order to determine a viable prospect for Cyprus and its people.”
An unsustainable scheme is poised to change. And with the Euro as high as 1.34 this afternoon against the USD, it is tempting to bet against it !
Have a good evening !