Cyprus Bailout | The Story of Cyprus University

Cyprus Bailout | The Story of Cyprus UniversityCyprus Bailout | The Story of Cyprus University

It’s a simple story, the University of Cyprus planned their academic year on the basis that they could rely on €40m income. Thanks to the previous government, a promised €10m failed to materialise in December 2012 and so it was down to €30m. Now, thanks to the levy, which threatens to take €25m of what they have left, they have to run the university on €5m. OK, the levy maths doesn’t add up, but blame that on Cyprus Mail, but a drop from €40m to €5m without a doubt will mean the University will cease if their deposits are subjected to the levy.

Here’s the problem, this is just one of a thousand stories where a depositor could argue that the levy shouldn’t apply to them because if it does they’ll go bankrupt. What does the south do? It’s obvious to me – print money. Originally this was going to be Cyprus Pounds but now it seems the idea is to have Cyprus Euros, issued by the south and treated as if they are real Euros but with a separate exchange rate outside the country as inflation eats away at their value. Failing that, what? I suppose Greek Cypriots could tighten their belts and pay for their past financial mistakes. No seriously, what other solution will there be apart from printing money?

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