Don’t wait: there’s less than 24 hours left to get (almost) any Marketplace thank-you gift.
Cyprus avoids bankruptcy with $13 billion bailout deal
Share Now on:
After more than a week of turmoil, eurozone finance ministers reached a last minute deal to grant Cyprus a $13 billion bailout.
Under the current agreement, bank depositors with less than $130,000 will not lose any money. However, bigger depositors — most of them foreigners — may be taxed up to 40 percent. Last week, the Cypriot parliament rejected a bailout plan that would have taxed smaller bank depositors 7 percent.
Cyprus’ finance minister Michalis Sarris greeted the deal with relief.
“We have averted the possibility of bankruptcy, we really avoided a disastrous exit from the eurozone,” Sarris said.
Though Cyprus achieved a rescue deal, analysts say serious damage to the country’s banking sector has been done. As banks reopen, many foreign depositors are likely to move capital out of the country. The rating agency Moody’s has said in a report this morning that the bailout dealings in Cyprus “will have profound long-term negative consequences” for the country and the region.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.