Mar 25, 2013

Cyprus Bailout Remarks Alarm Markets


European and US stock markets have fallen despite the agreement of a bailout deal for Cyprus.

The falls came after the head of the Eurogroup of eurozone finance ministers suggested that the Cyprus model, which involves a tax on bank deposits, could form a template in any future bailout.

On Monday morning, hopes the deal would solve the crisis lifted shares.

By 15:30 GMT, all major European markets had fallen into negative territory, joined by US stocks.

The president of Cyprus, Nicos Anastasiades, later addressed his country in a television broadcast.

The deal was "painful" but the best that could have been struck under the circumstances, he said.

He said that controls limiting restricting the movement of capital would be temporary and he promised to protect the weak, saying that welfare payments would be met.

0 comments:

Post a Comment

Share

Twitter Delicious Facebook Digg Stumbleupon Favorites More