The goal of the plan was to raise €5.8 billion ($7.5 billion) and avoid a financial collapse of Cyprus’ banking system.
But the outcry, globally, was immediate and intense. On Monday, it became clear the government of Cypriot President Nicos Anastasiades was itself in danger. Officials of the International Monetary Fund, European Central Bank and the European Commission, collectively known as the “troika,” agreed to modify the plan.
Anastasiades party holds 20 seats in the 56-member parliament and needs the support of other parties to meet the troika’s demands as the terms of a bailout.
Mike Obel assigns, edits and writes stories about business, markets, finance and economics. Before coming to International Business Times, he worked on the Finance Desk of...