<<< back to article list

BNN: Cyprus deal shock sends euro, shares tumbling

Blog by Brad Herman | March 18th, 2013

The surprise decision by euro zone leaders to part-fund a bailout of Cyprus by taxing bank deposits sent shockwaves through financial markets on Monday, with shares, the euro and the bonds of struggling euro zone governments all tumbling.

The bloc struck a deal on Saturday to hand Cyprus rescue loans worth 10 billion euros ($13 billion US), but defied warnings - including from the European Central Bank - and imposed a levy that will see those with cash in the island's banks lose between 6.75 and 9.9 percent of their money.