Cyprus Euro Problem
Posted: 30 May 2012 23:51
Hi,
Cypriot banks are exposed to Greece. Developers drove a property boom based on easy credit after Cypriot entry into the Euro club. That easy credit was and is the direct consequence of all the European power chasing politicians and the fee grabbing private banks and large investors.
Therefore Cyprus like all eurozone members cannot escape any of the damage that may unfold in the coming months.
However Cyprus has many positives. Tourism still has its health. This in large part to Cyprus cultivating emerging markets such as Russia.
Unemployment although on the increase, most are still in work and even with austerity measures there is still a consumer demand.
And most importantly the recent gas finds should wipe away the potential and perception of years of gloom.
I am not overly familiar with the details of said gas find but it is there and should boost and help pay for Cypriot debt both sovereign and private. Gas being gas, it often needs a pipeline. What is the plan regarding this?
Used wisely the gas money can reignite both tourism and property back to a pre-crisis time and only if lessons in prudence are initiated.
Cypriot banks are exposed to Greece. Developers drove a property boom based on easy credit after Cypriot entry into the Euro club. That easy credit was and is the direct consequence of all the European power chasing politicians and the fee grabbing private banks and large investors.
Therefore Cyprus like all eurozone members cannot escape any of the damage that may unfold in the coming months.
However Cyprus has many positives. Tourism still has its health. This in large part to Cyprus cultivating emerging markets such as Russia.
Unemployment although on the increase, most are still in work and even with austerity measures there is still a consumer demand.
And most importantly the recent gas finds should wipe away the potential and perception of years of gloom.
I am not overly familiar with the details of said gas find but it is there and should boost and help pay for Cypriot debt both sovereign and private. Gas being gas, it often needs a pipeline. What is the plan regarding this?
Used wisely the gas money can reignite both tourism and property back to a pre-crisis time and only if lessons in prudence are initiated.