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Bloomberg Article

It was the second time in nine days that Cyprus struck a deal with European creditors and the IMF. The first accord, reached in the early hours of March 16, fell apart three days later when the Cypriot parliament rejected a tax on all bank accounts on the island.

With the ECB threatening to cut off emergency financing for tottering banks as soon as today, Cyprus’s leaders bowed to creditors’ demands to find another way of shrinking the Mediterranean island’s financial system.

Bloated by investments from Russia, Cypriot banks have assets equal to 750 percent of the country’s gross domestic product, more than double the euro-zone average, the European Commission says. Russian companies and individuals have an estimated $31 billion in Cyprus, according to Moody’s Investors Service.

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