Entry into the EMU in 2008 followed by the Eurozone crisis after 2010 laid the ground for the Cypriot banking crisis. Euro entry facilitated a vast inflow of funds, above all from Greek banks as they absorbed increased flows from banks of the Eurozone core. This soon turned to bust as the Eurozone crisis took hold: Cypriot banks made catastrophic losses on Greek Government Bonds and as funds fled from Greece, Greek deposits fled from Cyprus.

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