KINGSTON, Jamaica - In the last few days, the government of Cyprus has begun to implement the measures demanded of it by the European Union, the European Central Bank and the International Monetary Fund (IMF).
In return for providing €10 billion (US$13 billion) in support, a sum small by international standards, Europe has taken steps down a route that may set a precedent for Slovenia and others in the Eurozone such as Italy and Spain, if they are unable to resolve their long-term economic problems.
The accord requires the Cypriot Government to take around 40 per cent of depositors' holdings from anyone with over €100,000 (US$128,000) in the two largest Cypriot banks.