Global Insider: Despite Mixed Indicators, Bailout Looms for Cyprus

The president of Cyprus and the head of the country’s central bank acknowledged earlier this month that Cyprus may need to seek a bailout from the European Union’s European Stability Fund due to Cypriot banks’ exposure to the Greek crisis. In an email interview, Farid Mirbagheri, a professor of international relations at the University of Nicosia, discussed Cyprus’ position in the European debt crisis. WPR: What are the scope and causes of Cyprus’ current economic difficulties? Farid Mirbagheri: The main issue has been exposure to the Greek crisis. Cypriot banks hold around €5 billion ($6.2 billion) of Greek sovereign debt […]