Bruce Krasting: An Interesting Bailout in the Offing
There is a sideshow going on in Europe this week. All eyes are on the
Spanish bank bailout, but there is another bailout in the works –
Cyprus. I believe that a Cyprus deal will be agreed to within days. The
question in my mind is, “Who is going to put up the money?”
Let me first say that the problems in Cyprus are very small compared to
Spain. If it were not for the fact that the rest of Southern Europe is
on fire, Cyprus would get a very nice deal from its “friends” in
Brussels. I think the country needs about Euro5B to shore ups its banks,
another E20B for the Treasury. Chump change these days.
I have written about Cyprus and the 2011 military base explosion that brought the country to its knees (Link, Link) . It’s an interesting story with an interesting outcome. The Russians bailed out Cyprus with a Euro 3b loan.
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