Living with a 10 billion euro bailout – the story from the streets of Cyprus

The nightmare for Cyprus started in March 2013. The country’s banking sector faced a sudden squeeze. The two biggest players – Bank of Cyprus and Marfin Laiki Bank – were in danger of a collapse which would have sparked a huge negative shock for the island’s economy.

And it wasn’t just Cyprus. Fears circulated that a meltdown in the Mediterranean could inflame problems in Europe and beyond. Faced with the potential for a domino effect, the Eurogroup (the main forum for the management of the single currency area) finance ministers offered a €10bn bailout. Eighteen months on, the bailout has altered the lives of ordinary Cypriots and turned a country against the institutions which struck the deal.

ESO: Background information: Statement by the European Commission, ECB and IMF on the Fifth Review Mission to Cyprus http://www.europeansources.info/record/statement-statement-by-the-european-commission-ecb-and-imf-on-the-fifth-review-mission-to-cyprus/

ESO: Background information: Cyprus economic crisis: 'Still recovering' one year on http://www.europeansources.info/record/cyprus-economic-crisis-still-recovering-one-year-on/

European Commission: DG Economic and Financial Affairs: Financial assistance in EU Member States: Cyprus http://ec.europa.eu/economy_finance/assistance_eu_ms/cyprus/index_en.htm

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