Cyprus Secures Bailout Deal - WSJ.com
In Cyprus they burn the depositors. A once off tax on deposits of 9.9% will be applied to help pay back bond holders
The bailout will be close to 100% of GDP, like ours.An initial assessment of Cyprus's finances in January concluded it needed more than €17 billion, including €10 billion just to stabilize its banks. That would have been an unmanageable burden for the island, whose annual economic output is less than €18 billion and shrinking.
If we'd put a 10% tax on deposits on the night of the guarantee, it would have raised 40 billion. Good idea?