Bailout of Cyprus. The work is to be 2 pages with three to five sources, with in-text citations and a reference page.

I will pay for the following article Bailout of Cyprus. The work is to be 2 pages with three to five sources, with in-text citations and a reference page. Cyprus Bailout Presented to Cyprus Bailout Cyprus has currently joined the league of countries such as Greece, which are in deep debt turmoil and need a bailout to salvage their economies from recession. The problems behind Cyprus economic turmoil have stemmed from its banking sector, which is heavily reliant on Greek’s economy, but many analysts believe that Cyprus has been suffering for fiscal imbalances that needed urgent addressing (Telegraph, 2012). The two main banks in Cyprus suffered greatly from the Greek’s sovereign bond write down, which had major backing from the EU members Cyprus included. The two banks lost more than 2.3 billion Euros on Greek sovereign bond, which they asked the state to fill in their regulatory capital (Telegraph, 2012). In addition, Cyprus’ economy had been described as a “Casino economy.” In other words, the country has a banking sector much larger than the country’s gross domestic product. This has been said to be negligence in following the banking rules, making everyone else vulnerable to such economic crisis (Erlanger & Kanter, 2013). Another major problem according to Erlanger & Kanter that led to Cyprus economic crisis is the threat by Euro zone countries to confiscated significant part of the savings of Cypriot banks’ depositors. The result was that large depositors and ordinary savers in such banks were uncertain about their savings. The private sector was therefore more reluctant to steer more funding to financial institutions in trouble as in the case of Cyprus, which increased the need for the country to look for a bailout from the European Central Bank. Cyprus problems also emanated from the country’s wage bill which as analysts explain is the highest in the Eurozone, implying the country similar to Greece has a lavish life where their GDP is much less than their net expenditure.