80 per cent of investors see Cyprus as a template

Following alarm over Cyprus this March, which eventually which saw a haircut on uninsured depositors and senior bondholders at the country's two largest banks, concerns that EU action could be a template has not dissipated. According to a survey by ratings agency Fitch, 80 per cent of investors now believe that this now constitutes a precedent for other Eurozone countries (release).

26 per cent of investors believe that weakening of support for senior debt will affect banks in all countries. A staggering 89 per cent of investors focused on financial institutions believe that sovereign support has been eroded with 43 per cent of these seeing this precedent applying widely across the whole Eurozone.