Cyprus: Bailout Should Have Come Sooner

People ♦ Published: August 14, 2013; 19:19 ♦ (Vindobona)

Cyprus should have applied for an EU rescue package in 2011 to avoid the restrictive terms forced on investors to ensure support, its central bank governor said yesterday.

Cyprus: Bailout Should Have Come Sooner / Picture: ©

Panicos Demetriades said Cyprus could have got better terms if it applied for a bailout shortly after the Greek debt haircut in late 2011, which cost Cyprus banks an estimated € 4.5bn ($ 6bn) instead of July 2012. “A request should have been submitted by the end of 2011 or early 2012 as it was evident that the banks were unable to secure the required capital and there were…