bailout

The Cyprus bailout deal has the following terms as approved by the Eurogroup:

Editor's Note: The Eurogroup released the following statement moments ago in connection with the banking and sovereign debt crisis in Cyprus. The Eurogroup has reached an agreement with the Cypriot authorities on the key elements necessary…

Regarding Cyprus, recently I heard someone claim that depositors are not creditors of a bank despite the fact that deposits are bank liabilities. This is bollocks. Depositors are indeed creditors, particularly in Europe where they are…

As I indicated three months ago, the IMF now supports capital controls in specific and extraordinary circumstances, particularly in view of its experience in Iceland. This is now relevant given the situation in Cyprus. Matina Stevins of Dow…

The Cypriot banking system is insolvent. Heaping private losses onto taxpayers is bad public policy. Let's start with those two statements, because starting there makes clear that forcing losses onto bank creditors was the only choice in…

The latest news is the bank levy on small deposits could be lifted. As Ryan Avent just tweeted, it was insane in the brain to begin with, wasn't it?

The latest news out of Cyprus is that the Cyrpiot government has delayed the vote on a bank bailout and savers tax by one day to Monday and that it has also extended the bank holiday from just Monday to Tuesday as well. In my view, the news…

This morning we learned that after hours of tense negotiation, Europe has hammered out a 10bn euro "bailout" of Cyprus. I put the term bailout in quotes because the key feature of this deal is the bail-in of Cypriot depositors to the tune…

I listed Ireland in two of my surprises for 2013. I wrote that Ireland’s government bonds do not outperform again. Greece outperforms this year. I also wrote that Ireland goes to OMT. The first prediction is probably more controversial…

A key issue that will be addressed this week is how will the ECB respond to the electoral outcome of Italy.