Cyprus Suffered 10.5% In GDP Losses

September 17, 2015
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Cyprus experienced irreparable losses to its banks, due to governmental mediation in the financial sector.

An European Central Bank report entitled, "The fiscal impact of financial sector support during the crisis," determined that the total amount of losses held 10.5% of the nation's GDP.

In its report, the EC stated, "In the worst case, a limited recovery rate could indicate that the interventions led to major irreversible losses, as in the case of Cyprus, with a holding loss for the government on equity instruments amounting to 10.5% of GDP owing to the restructuring of one of its largest banks."

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