By ‘gambling’ do you mean investment in Greek bonds? If so so many other institutions especially in Germany and France did the same. The difference is they could stand the loss easily whereas Cyprus being a smaller economy could not. The bond market is not a casino. It’s an instrument of investment which allow individual nation states to raise capital. You may as well say all investment is gambling.
The IMF did have a role in the haircut discussions but the Euro Group were the leading force. They were lending the bulk of the €10bn. Cyrus went along with it because they wanted to avoid bankruptcy. Why do you constantly defend the EU actions? Merkle initially praise the haircut for all depositors and I believe Germany pushed for it in private discussions.
The bailout is not a gift it’s a loan with interest. Cyrus will be paying it off for generations.
Bank Guarantees to certain amounts are a treaty obligation of EMU. Individual member states are obliged to honour them. I accept in the case of amounts of over €100k the risk is the depositors. However no other state within EMU requiring a bailout have enforced this haircut or had it forced upon them. Why has Cyprus been singled out?
They were made an example of because they indulged in off shore banking attracting hot money from Russia and elsewhere.
The EU did not like it and decided to punish the Cypriots for not falling behind their particular line and destroy the counties means of making a living.
I also believe Cyrus became isolated when it rejected a peace plan drawn up by the UN to reunify the island.
Do as we say or else. That’s the EU system of democracy.