Cypriots have taken a significant haircut losings a significant portion of their deposits. Without the new deal, all depositors would have lost funds. By striking a deal at least depositors with under $100,000 will be “fully guaranteed”.

Cyprus, with the agreement of Eurozone finance ministers, dodged a disorderly sovereign default and unprecedented exit from the euro by bowing to demands from creditors to shrink its banking system in exchange for 10 billion euros (equivalent to $13 billion US) of aid to prevent its banking system collapsing and keep the country in the eurozone. All Cyprus banks will remain closed until Thursday, the central bank has announced in a shock statement.

February 10, 2022: Questions: Is the rush to vax to beat out the new COVID tests or the domino fall of the pension funds worldwide? Whose fault are the shortfalls aka pension deficits aka losses aka zero (0) funds? Now ask the title question.

“The pension industries in many countries are in a bad way. According to a Citibank report from 2016, the 20 largest OECD countries alone have a US $78 TRILLION shortfall in funding pay-as-you-go and defined benefit public pensions’ obligations. This shortfall is far from trivial. It is equivalent to about 1.8 times the value of these countries’ collective national debt.” CLICK HERE

Readers Supported News: By Washington’s Blog

While everyone from Tony Blair to Nouriel Roubini is debating whether or not bankers should be hanged, the Wall Street Journal and Bloomberg provide some fascinating historical context.
Dark subjects: A Red Saunders creation. This picture is…