The proposed bailout deal that would see Cypriots’ bank accounts taking a 6.75%-to-9.9% haircut has sent shock waves through world markets and caused the euro to lose 0.7%.
The Financial Times is not impressed. In an editorial the paper slams the proposal:
“With unsustainable public finances and a banking sector about seven times the island’s annual economic output, the stark choice was between sovereign restructuring and forcing losses on bank creditors. Choosing the latter course was correct. But instead of restructuring broken banks at the unfortunately necessary price of creditor losses, this package pays the price without the benefit.”
Read more here.
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