Here are a two additional questions:
1. Was the situation so dire in Cyprus that something needed to be done?
2. If yes, what would have been a preferable solution?
1. Yes the country and it’s banks were close to collapse because of lost investments in Greece and the financial crisis in Europe.
2. The preferable solution should in my opinion have been the same as any other Eurozone country. ie. Full bailout with depositors protected. They have no responsibility for the disaster. It’s state theft by any other name.
Remember that a bailout is a loan, not a gift. Cyprus has to repay it back in full plus interest, except of course the money taken from depositors. 👿
When this thing unravels depositors will very likely have to suffer a 40% loss in both Bank of Cyrus and Laiki. The EU has created a precedent that will not be forgotten especially by Russia.