Quote:
Originally Posted by temple5
How can a country that small need so much bailout money.
I dont know enough about Cypris (I wasnt really sure where it was before all this - I thought it was closer to Greece (thanks google maps) to really make an informed comment about this.
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Canada actually has had (and continues to have) a strong peacekeeping force in Cyprus for what it is worth. Greeks and Turks butting heads for years.
http://www.forbes.com/sites/abrambro...ancial-crisis/
And here’s the larger picture. Cyprus is badly indebted. Its debt-to-GDP ratio pushed to 127% in the third quarter of 2012, the latest period tabulated by European Union officials. Such high debt reflects Cyprus’ ill financial health. Only Greece (at 153%) has a higher level. The bailout would begin to reduce its debt, sending it back below 100% of GDP within the year.
Cyprus is in a particularly bad position because much of its economy is tied to neighboring Greece, the host of its own monetary problems. Making it worse, Cyprus was a major Greek bondholder, so when the second Greek bailout package went through last year, it caused a 4.5 billion euro ($5.9 billion) hole in the Cypriot budget.