Cyprus’s bailout, which will hit up small depositors to help bail out the country’s banks, is being billed as either a sensible one-time approach to a dangerously large banking system swollen by deposits from Russian oligarchs, or a titanic policy mistake that risks setting off a spate of bank runs across Europe’s many troubled peripheral nations.
Total size of the deal: €10 billion
Bank levy on deposits over €100,000 ($130,860): 9.9%
Bank levy on deposits under €100,000: 6.75%
Amount the bank levies will raise: €5.8 billion
How much will likely be needed to recapitalize the Cypriot banking system as a whole: €10-12 billion [Barclays Research]
How much as a share of GDP: 60% [Barclays Research]
How does that compare to other bailouts: Ireland (40% of GDP), Greece (27% of GDP), Spain (6.5% of GDP) [Barclays Research]
Current size of the Cypriot banking system relative to national economy: 8 x GDP [Morgan Stanley]
What that looks like in a chart:
Percentage of Cypriot deposits from nonresidents: 37% [Barclays]
Percentage from non-euro area countries: 30%
Cyprus’ share of euro zone GDP: 0.2% [AP]