WSJ’s Charles Forelle explains the relationship that has built up between Russia and Cyprus since communism fell. The problem now is whether this undermines the country’s membership with the euro zone.


3/20/2013 8:29:57 AM3:08

Category: Bailouts, Credit, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Why Cyprus Keeps Running to Russia”

  1. george lomost says:

    Simon Hobbes’s interview of Bill Browder this morning re Russia’s relationship with Cyprus is a lot closer to the truth than your video. Not just Russia. Cyprus has been a money-laundering hub for participants in a geographic arc from Serbia to Israel for as long as I can remember. For example, when Serbian strongman Milosevic was in power there were regular reports of officials flying into Nicosia with attache cases full of cash.

  2. AHodge says:

    so it looks now like some genuine resolution going on in cyprus
    For Laiki the insolvent bank i mention bloomberg

    QUOTE Mr Demetriades said a bill would be submitted to parliament later on Thursday to restructure the banking sector. The law is expected to wind up Laiki, the island’s second lender, splitting into a “good” and “bad” bank, with larger deposits folded into the latter UNQUOTE

    at the end this may give a great big LAIKI resolution haircut–probably more than half, to the larger deposits, unless there is outside support or Cypriot deposit insurance, im guessing not.
    Those large deposits writtten down may be mostly foreign

    with some rough justice. they as funders will be paying for the Bad Bank Laiki bankruptcy, and the equity holders also written off.

    Andrew Hodge

    4:44 PM (7 minutes ago)

    to David, Kurt_Karl, Sanna, Lars, Eleni, kozo-koide, Stephen

    i think cyprus is taking a partial lesson from iceland the deposit tax and equal reduction in deposit liabilities won’t fix most of the really broke banks in Cyprus like Laiki

    but Laiki is being put into good bank/ bad bank resolution and all the big deposits, read mostly foreign and Russian will be put into the Bad bank

    somewhat like Iceland only protecting domestic depositors.

    if the laiki bad bank assets are written down more than half

    then roughly so will the deposits.

    small (read cyprus) laiki deposits will be mostly protected maybe. beyond the initial smaller tax

    Russia really won’t like this

    but the threat might induce them to offer a sweeter alternative