Oh dear. I'm starting a new thread on this because (if true) it means they need to tear everything up and start again.
Cyprus forced to find extra
The report is here: http://blogs.r.ftdata.co.uk/brussels...09042013-1.pdfCrisis-hit Cyprus will be forced to find an extra €6bn (£5.1bn) to contribute to its own bailout under leaked updated plans for the rescue.
In total, the bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.
Cyprus's politicians had already faced intense domestic political pressure for agreeing to impose hefty losses on savers at two struggling banks in order to fulfil its eurozone partners' demands of contributing €7bn
The key from the summary is:
This...is big. Cyprus can't come up with this money. They need this money. So where's it going to come from? Do they run to Russia? Hit up the depositers still further? Pull out of the Euro?The European Commission, in liaison with the ECB, estimates that Cyprus's gross financing needs
amount to about [EUR 23bn] over the three-year programme horizon, i.e. 2Q2013-1Q2016. This
includes needs for the recapitalisation of the banking sector, the redemption of maturing medium- and
long-term debt including loans, and fiscal needs.
Thanks to burden-sharing measures adopted by the Cypriot authorities prior to signing the MoU in
particular as regards the recapitalisation of the banking sector, net financing needs are expected to
amount to a maximum of EUR 10bn
The entire thing has been shambolic. Europe running about vacillating on what to do, no one having the authority to put their foot down. Cyprus staffed by incompetants who can't count. This is the smallest possible country to fall over, but the EU can't even get this right, or look like the likely to get it right. It's a mess.