The President of the European Parliament says the Cyprus bailout deal was negotiated in a way that “lacked transparency, democratic accountability and were badly communicated.” Martin Schultz says this "is no way to do business in Europe."
The EU bailout is, at best, being treated as a necessary evil to keep Cyprus from economic disintegration. German Social Democratic politician Schulz says it allows for the public finances and economy “to enter a sustainable path.” However, he added that the deal needs to be “fully examined.”
All banks on Cyprus will remain closed through Thursday, instead of reopening today as earlier planned. President Nicos Anastasiades said "very temporary restrictions" would be put on withdrawals to avoid a run on the banks, but gave no details.
The €10 Billion deal was pegged on Cyprus being able to come up with €5.6 Billion on its own. That’s going to come from a 30 percent levy on savings of €100,000 or greater at the Bank of Cyprus and Laiki Bank. The levy is targeted at those two banks because of the role of Russian money, laundered or otherwise.
There is also concern that the Cyprus Bailout Deal is the blueprint for future bailouts. If countries come forward needing a boost from the EU, they will be asked what they will do for themselves, first.
The markets weren’t thrilled with it, Wall Street closed lower on news of the bailouts details.