Cypriot President Nicos Anastasiades has said that capital controls will be gradually loosened, as he does not wish to put Cyprus at risk. It looks too late for that already.
We've noted before that Cyprus can either choose to lose the euro or the euros will leave Cyprus themselves when capital controls are removed. Anastasiades can try to slow that process, but it will be death by a thousand cuts for the small island.
Our reporter Julian Harris on the ever increasing costs of Cyprus' bailout deal:
Cyprus had originally been asked to find around €7bn, with its international lenders – the European Union and International Monetary Fund – stepping in with a further €10bn.
Yet a spokesman for its government, Christos Stylianides, admitted yesterday: “It is a fact the memorandum of November talked about €17.5bn in financing needs. [But] it has emerged this figure has become €23bn.”
Stylianides blamed the previous administration’s indecision for the escalating costs.
The ongoing saga of Cyprus’s bailout will top the agenda of a two-day meeting of EU finance ministers – known as the Eurogroup – that starts today in Dublin.