Cyprus may reject the bailout, again.

Cyprus_ParliamentAccording to a Reuters, there has been a second vote scheduled in the Cypriot parliament regarding the second proposed bailout offer.

Just to clarify, it currently stands that if Cyprus manages to raise €13billion from it’s “own” sources, Troika will pledge another €10billion loan.

But it’s not as simple as that, it never is, is it!?

Let’s assume that the current plan gets voted through, by the previous President’s party abstaining from the vote, the following must ALL still happen for the deal to be concluded:

  1. Some of the involved countries must vote on both, bailing out Cyprus and the financial details of the deal.
  2. Cyprus must comply with the Troika Austerity measures with regard to down-sizing the bloated public sector.
  3. Cyprus cannot use any possible future profits from any discoveries in their own EEZ, under threat of military reaction from Turkey, to set up a solidarity fund to raise the funds needed.

All in all, it’s not going to be an easy few months, with unemployment growing and even the most successful businesses being forced to cut costs to stay afloat.

But we must remember, this is if we as a country accept the terms imposed by our European friends. We wonder though, what would happen if we don’t? Scary stuff.

(If any clarifications are needed, or you would like to correct us, please post a comment below and we’ll do our best to keep this piece as accurate as possible.)

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OnThisIsland

Hector Kolonas started OnThisIsland.com as a way for him and his friends to keep in touch with what was happening. Since that day in April 2005, a lot has changed around here, and Hector simply makes sure everything is working :p