Cyprus bailout casts doubt on future of Euro

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Monday, March 25, 2013

Reuters: The messy deal to bail out Cyprus has averted the latest threat to the break-up of the euro but raises new questions about the currency's long-term viability.

Savers in other euro zone banks appear so far to be taking the freezing of balances over 100,000 euros in Cyprus's two biggest lenders in their stride. Perhaps they judge that events in a tiny, far-away island with outsize banks and a reliance on deposits from Russian oligarchs hold little relevance for them.

 

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