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.
Loans are never repaid by governments, never mind bankrupt ones.
Of course they are. Bonds are nearly always repaid on maturity – if not then it’s a hard default and all hell breaks loose. Governments might issue more debt to repay existing loans, but that’s not the same as non-payment