Daily VideoMarch 26, 2013
Bailout Saves Cyprus from Potential Bankruptcy Plunge
The country of Cyprus avoided bankruptcy yesterday after it agreed to terms for a financial bailout from its partners in the eurozone. The bailout, which totaled $13 billion, may have prevented financial chaos, but will still leave citizens hurting.
“I don’t think there is any denying that the Cyprus people will have to go through tough times and will suffer the consequences of a protracted period where wrong decisions were made,” said Cyprus Finance Minister Michalis Sarris.
As part of the deal, large depositors in the two biggest banks will take substantial losses to help the government raise some $7.5 billion, and the country’s second largest bank will be shut down. While this will prevent Cyprus from falling out of the eurozone, many in Cyprus felt the deal was far from generous.
“We feel rather bitter. And we feel rather that we have not been treated the same way as other partners, probably being the smallest, I don’t know. But we are a resilient people. And we are going to fight,” said Cyprus Foreign Minister Ioannis Kasoulides.
The decisions that were taken were harsh. It is a catastrophe. It will be a long time before things are right again,” – Savvas Georgiou, Cyprus.
“It’s a big shame what has happened. But with the way things were going, what else could they do? There was no other solution. God help us all,” – Elizabeth Loakovou, Cyprus.
Warm up questions
1. What is the eurozone?
2. Where is Cyprus?
3. What is a bailout?
1. How would you characterize the Cypriot reaction to the news of the bailout?
2. Why do you think the other eurozone countries wanted to bail Cyprus out?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
Republican Donald Trump and Democrat Bernie Sanders won major victories in the New Hampshire Primaries and Republican Ted Cruz and Democrat Hillary Clinton banked majorities in the Iowa Caucuses. Continue reading
Washington outsiders Donald Trump and Senator Bernie Sanders won big in the New Hampshire primary Tuesday night. Continue reading
Hillary Clinton found herself navigating controversy this week stemming from comments made by her supporters. Continue reading
A multi-million dollar science grant will help researchers look at new ways to predict severe weather in Oklahoma where 100 tornadoes struck in just the past year. Continue reading
Online fantasy sports leagues have exploded in popularity as companies scramble to attract new players to the online betting forums, but the odds of making money are not in the average players’ favor.