Saturday, March 23, 2013

Risk Analysis - Cyprus

An estimated 10 billion Euro bailout to be provided to Cyprus by 'The Troika' (European Central Bank, European Commission, and International Monetary Fund) is ensnared in regional energy, financial, geopolitical, and security concerns.  China, Germany, Israel, Russia, Turkey, the EU, the UK, and the US all have competing and overlapping concerns regarding the structure and implementation of Cyrpus' bailout from the Troika and it's accompanying 5.8 billion Euro bail-in to be funded by bank depositors and investors.  An estimated total of 15.8 billion euros is needed to recapitalize Cyprian banks and refinance it's national debt.  The ECB is scheduled to cut off short term financing to Cyprus on the 25th of March if a deal cannot be reached by then.




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