[...] entry into the euro has been a disaster for Cypriot banking. Most directly it exposed Cyprus to huge and damaging financial flows which were a direct result of the way in which the global financial crisis manifested itself in the Eurozone. Whatever other problems Cypriot banking might have stored for itself over two decades of offshore activities, it is these flows which formed the backdrop to the lethal Cypriot banking crisis of 2013. Only after the losses on Greek government bonds (bought with deposits, by then long gone, from Greek banks) that the crisis proper broke out in Cyprus.

Download here

{edocs}/images/PDF/out_there/oped/RMF-OPP-1-Lindo.pdf,100%,500{/edocs}