Screwed in Cyprus

With a €10 billion bailout deal, Europe’s leaders say they’ve averted yet another crisis. For the people of Cyprus, it’s just getting started
A TV reporter covering the crisis in Nicosia, Cyprus Photograph by Alessandro Penso for Bloomberg Businessweek

Ionna Constantinou, a 24-year-old lawyer in Nicosia, Cyprus, was up early on March 16, packing her bags for a weekend holiday in London. She turned on her laptop and logged on to Facebook. “You see people screaming, posting links, and you say, ‘What’s happening?’ ” she recalls. The news—that the leaders of the tiny island nation in the eastern Mediterranean had agreed to raid deposits in the country’s banks as part of a bailout deal—instantly upended Constantinou’s plans. She and her boyfriend, a lawyer named Simos Angelides, immediately canceled their flights. They waited for the banks to reopen, to see whether their savings would still be there. And like all Cypriots, they wondered whether the financial system was about to collapse and take their country down with it. “It was like an atomic bomb that fell,” says Angelides, 35. “Now we’re just living in the radiation.”

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