It’s good to see that Cyprus is making news at last. Monday’s and Tuesday’s Financial Times carried substantial articles on the inside. In Wednesday’s (5-6-12), it even made the back page

Casey, Bernard

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Ioanna Antonopoulou 2012-6-7Cyprus: Almost front page newsblogs.lse.ac.uk /greeceatlse/2012/06/07/cyprus-almost-front-page-news/by Bernard H. Casey It’s good to see that Cyprus is making news at last. Monday’s and Tuesday’s Financial Times carried substantialarticles on the inside. In Wednesday’s (5-6-12), it even made the back page.For a long time, all we heard about were the PIGs – a somewhat offensive term – who mutated into the GIPSIS –scarcely any better. Or we heard about the FANGs, who were attacking them – until two of their number – Austriaand the Netherlands – got downgraded, leaving only Finland and Germany with a triple A. Graphs of 10year bondrates never showed those of Cyprus. People didn’t have their eye on the ball – perhaps because it was too small tonotice. But they should have. If they totted up what one knows about Cyprus – Russian loan of €2.5bn or c14% of GDP,Popular Bank recapitalisation of €1.8bn or c 10% of GDP, Emergency Liquidity Assistance estimated in the FT at€4bn or c22% of GDP, loans to Greece by Cyprus banks of €22bn or 22% of GDP – trouble looked inevitable. What is more, those who worry about domino reactions should watch out. If Grexit, it is inevitable that there willCyprus exit, too. (Perhaps, in line with the Grexit, or the Squit – Spain quits – we could call this the Cypriout). Fearswill be met before anyone has had time to think. And so the Portuguese, Irish or (the newest concern) Spanishtablets will tumble too. 1/1

Cyprus: almost front page news

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