Cyprus: Prone to Recession

People ♦ Published: April 3, 2013; 10:27 ♦ (Vindobona)

Despite of the bail-out package, the country is threatened by a deep recession in the coming two years.

Cyprus: Prone to Recession / Picture: ©

Cyprus was finally able to agree on the terms for the bail-out package with international lenders and therefore can prevent the country from bankruptcy. However, the austerity measures in state finances will dampen economic growth. Cyprus is threatened by slipping into a recession in 2013 and 2014.

For the emergency credits, Cyprus will pay a 2.5 % interest rate. Repayments will…