European Debt Crisis

In Cyprus bailout, what’s Russia got to do with it?

Stephen Beard Mar 15, 2013
HTML EMBED:
COPY
European Debt Crisis

In Cyprus bailout, what’s Russia got to do with it?

Stephen Beard Mar 15, 2013
HTML EMBED:
COPY

European finance ministers are meeting in Brussels today, and at the top of their agenda is Cyprus. The small Mediterranean island nation, which has 850,000 people, is in desperate need of a bailout.

Like other small nations in the region such as Ireland and Iceland, Cyprus allowed its banks to get too big. Cypriot banks have broad exposure to neighbor Greece and its financial troubles. Though the overall amount owed by Cyprus, $22 billion, is manageable, European leaders are hesitant to offer the ailing country a rescue.

Simon Tilford of the Center for European Reform says that might have something to do the biggest banking customers in Cyprus.

“By bailing out Cyprus, they are bailing out Russian oligarchs and financiers who have used Cyprus as a financial center,” says Tilford.

To hear more about the economic state of Cyprus and the eurozone, click on the audio player above.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.