Gary why is it fair in Cyprus to steal from 100K depositors and allow other EU states depositors to be untouched? All other countries in trouble received bailouts far larger than Cyprus and bank deposits remained in tact. Only bank shareholder took a hit which is normal.
The difference is that in those cases its was a sovereign default cause by inability of the government to borrow. The bondholders to those countries had to take a large haircut (50+%). Bank depositors didn’t need to take a hit because they were not the problem.
In Cyprus this is comparatively little sovereign debt, the banks were in trouble because and the deposits were large compared to its GDP.
The banks have lost the depositors money so Cyprus is only (in theory) obliged to protect up to 100K.
Don’t ask me, ask the people who had over 100k in the Cypriot bank accounts that are being raided
Apparently its because the Cypriots did not ask where the money came from, and according to Russia, its was stolen.