Cyprus proposal misguided: FT

The proposed bailout deal that would see Cypriots’ bank accounts taking a 6.75%-to-9.9% haircut has sent shock waves through world markets and caused the euro to lose 0.7%.

The Financial Times is not impressed. In an editorial the paper slams the proposal:

“With unsustainable public finances and a banking sector about seven times the island’s annual economic output, the stark choice was between sovereign restructuring and forcing losses on bank creditors. Choosing the latter course was correct. But instead of restructuring broken banks at the unfortunately necessary price of creditor losses, this package pays the price without the benefit.”

Read more here.

Also read:

Cyprus downgraded, asks for bailout

Despite ECB promises, Eurozone risks persist

France won’t be Eurozone victim

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.