Welcome to www.byshenk.net Monday, May 25 2020 @ 03:43 PM CEST

Cyprus is a bit like Ireland, but not because of the EU

  • Wednesday, March 20 2013 @ 01:07 PM CET
  • Contributed by:
  • Views: 8,195

In a posting at the Guardian, Costas Lapavitsas compares the banking crises in Ireland, Iceland, and Cyprus, claiming that "Ireland followed a certain path, determined by the troika and membership of the EMU", and that "[t]he deal currently offered to Cyprus by the troika is along the path of Ireland", whereas "Iceland followed a radically different path, as it is free of the troika and not a member of the EMU."

I submit that, while there is a great deal of similarity between the cases of Ireland and Cyprus-- and difference from that of Iceland -- such similarity has little or nothing to do with the EU.

The EU, or the ECB, or the troika, are convenient whipping boys for European politicians and commentators, and sometimes deservedly so, but this does not seem to be one of those times.

In the case of Ireland, it was Ireland (or the sitting Irish government at the time) that created the problem. Its banks were badly run with poor oversight, which -- not surprisingly -- led to trouble when the financial bubble burst. In the face of this trouble, the Irish government chose not to let the banks fail or to restructure them, but instead to guarantee all lending to Irish banks, without limitation to the EU-standard of EUR 100,000. The result was that, when the banks could not honor their debts, the Irish state was responsible for them.

The role of the EU in this matter was limited to insisting that the Irish state honor the commitments it had made in choosing to guarantee all bank debt.

The case of Cyprus is similar. The role of the trioka has been to offer a loan of "only" 10 thousand million euros, arguing (reasonably, in the opinion of many) that a loan almost equal to Cyprus's entire GDP is not realistic. The details of the agreement arrived at, with small as well as large depositors being required to pay, were at the insistence of the Cypriots, not the troika.

Certainly Cyprus could have acted similarly to Iceland, by restructuring their banks and/or putting the costs onto the large depositors (those accounts above the EUR 100,000 guarantee level), but the Cypriots chose a different course. Perhaps the Cypriots felt that putting the costs on large depositors would put at risk the flow of money into and through Cyprus, and that it was important to preserve the contours of their banking system. But that was a choice the Cypriots made.


Trackback URL for this entry:

Cyprus is a bit like Ireland, but not because of the EU | 12 comments | Create New Account

The following comments are owned by whomever posted them. This site is not responsible for what they say.

  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Thursday, February 12 2015 @ 10:55 AM CET
When i talk about comments then some points comes in to mind which i want to discuss but there is no platform so i made a college paper writing service reviews website where those students are allowed to enter their comments who had already been in touch with such services or any time they had purchased it.
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Saturday, February 14 2015 @ 11:42 AM CET
There is a communication gap between customer and employee and no company will survive until they are not able to maintain their customer relationship properly however when it comes to read some stuff at usessay.net by their efficient they also suggest you to keep your eye on your services rather than your environmental or behavioral attitude with sound voice tone, if you are losing your customer, you are losing your faith and identity of your org that you have earned through your entire experience by the way of sound education.
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Wednesday, February 25 2015 @ 01:07 PM CET
How many do you want to grabessay.com? I retain seen these breeds of seeks however I am hardly indisputable what scale is suitable. It would be solid to understand if somebody is eating remote my naivety plus swindling counterpart what they should win eccentric me.
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Wednesday, April 01 2015 @ 05:21 AM CEST
To discover a essay employ you narrowly best dissertation. This demands to be ended later you are unerring what you are looking for furthermore how to explore a estimable author. Else, you could finish up along several bogus process later paying.
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Wednesday, May 13 2015 @ 11:02 AM CEST
Experts agree it is important immediately after your current blogging; May possibly learnt a lot of. As i browse an important best dissertation which can be would want to look into. The application was do not forget that notably since the correct way the majority of these expertise can be untrustworthy.
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Thursday, July 02 2015 @ 02:33 AM CEST
This strain to be broken later you are absolute what you are look for in addition how to walk around a admirable biographer. Else, you might finish up the length of more than a not many counterfeit Best Essay Writing Service in Australia development later paying..
  • Cyprus is a bit like Ireland, but not because of the EU
  • Authored by: Anonymous on Tuesday, September 29 2015 @ 01:51 AM CEST
A few abbreviate decades back, appearance acclimated to Replica watches be all about cutting latest appearance clothes and accessories. The acceptation or analogue of appearance has afflicted with the access of time. Today, appearance is not just about cutting the a lot of 'in-trend' clothes and accessories; it is added about selecting those clothes and adornments which affect you and reflect your personality in a different way. Artist wrist watch is one such chic appearance at http://www.mpsreunited.co.uk accent for women.Men wish to advertise these watches as a attribute for their status. If you are a appearance enthusiast, again absolutely you can acclaim the adorableness of Swiss watches. If you acquirement these watches from online stores, again it aswell reflects their popularity. It aswell provides a aristocratic chic blow of to your personality. Be it workplace, accidental fun evenings with accompany or an important academic dinner, a acute artist watch in one's duke extends your appearance caliber by leaps and bounds. Someone has accurately said, "what your abrasion is an addendum of your personality." If you accept to abrasion a designer, branded buy Replica watches watch, it absolutely conveys that you are a "cut aloft the rest."
  • Online universities such as
  • Authored by: Elizabeth P. Pickerel on Saturday, May 18 2019 @ 11:22 AM CEST
Online universities such as Skycap Loans, ICICI Banks, etc. offer loan to people to provide a good lending experience by as easy and fast loan application process.

User Functions


Older Stories

Friday 30-Apr

Sunday 14-Mar

Wednesday 04-Mar

Monday 02-Feb

Sunday 01-Feb

Saturday 04-Oct

Monday 30-Jun

Sunday 06-Apr


There are no upcoming events