Yellow Alert from cnbc: Cyprus may seem too small for
markets to care. But UBS has warned that the Mediterranean island is big enough
to cause trouble in the euro zone after seeking a bailout from the troika, made
up of the International Monetary Fund, the European Commission and the European
Central Bank.
After all, this is not the first time a relatively small
economy has threatened to trigger a pan-European domino effect ranging from Ireland , to Greece
and Portugal .
"The Cypriot case has all the ingredients to raise
questions about the consistency of the euro project again, comparable to
-albeit possibly less dangerous than - the Grexit hysteria less than a year
ago," said economist Martin Lueck from UBS. The country desperately needs 17.5 billion
euros in bailout funding to recapitalize its troubled banks and pay its bills
on time after taking a hit from its large exposure to the Greek economy…..
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