Cyprus is a small isle member of the European Union, representing 0.2 per cent of the eurozone gross domestic product. During its growth stage, susceptibility was developed by the Cypriot banking system after suffering significant losses during the Greek sovereign debt crisis. The government had a few options on the table - a "one-off" stability levy on all bank deposits (an option loathed by both native and foreign depositors), a bank restructuring plan, seeking help from Russia (which expected accessibility to the island's oil and gas reserves) and a complete banking system bailout (which would come with supervision and control from those offering the bailout). The market was quickly approaching a standstill and Cyprus had only two days to strike a deal in order to subvert the collapse its banking system. Nandita Yadav and Pratap Chandra Biswal are associated with Management Development Institute.
PUBLICATION DATE: September 10, 2013 PRODUCT #: W13369-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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