To Get a Bailout, Cyprus Needs to Launder Its Reputation
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Feb. 4 (Bloomberg) -- For months now, the euro area andother international creditors have been debating whether to bailout tiny Cyprus, which accounts for just 0.2 percent of thecurrency zone’s economy. Why the holdup?
International creditors have said the stumbling block isthat they are looking for a way to bail out the country withoutputting it on an unsustainable debt path. The real problem,though, is German elections in September: Many Germans believeCyprus is one big money laundromat for Russian crooks, andproposing to bail them out is not a vote winner.