A great article. I think the EU made a big mess up by even considering not honouring the deposit insurance scheme. Now everyone knows that the insurance is not really an insurance and the government can grab it anytime a crisis happens. All the trust built up over the years is gone with just one action.

Also all the big accounts with a large haircut will now cause almost all businesses to be affected. It will be very hard to see any business surviving this cashflow crunch in Cyprus.