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
The plaintiffs claim that the government is responsible for protecting the atmosphere under the Public Trust Doctrine. Continue reading
Welfare recipients have come into the spotlight as states crack down on how they can spend welfare money. Continue reading
The Teach For America program, which sends recruits into under-resourced districts to teach, is facing a low number of volunteers this year. Continue reading
One year ago, militant group Boko Haram kidnapped 300 female students from a school in Chibok, Nigeria. Continue reading
In the midst of a failed experiment, inventor David Stone realized he may have accidentally created a new environmentally friendly material to replace cement. Continue reading