A Diary of the Euro Crisis in Cyprus: Lessons for Bank Recovery and Resolution

Description

This book tells the story of the euro crisis in Cyprus from the inside. Written by the former Governor of the Central Bank of Cyprus, Panicos Demetriades, who was in office during this turbulent period, this book shows how the crisis unravelled through a series of key events that occurred during his tenure. Written in chronological order, and broadly based on the author’s personal diary, starting from his first day in office, this volume brings together economics, banking, regulation, governance, history, politics and international relations. Presenting personal witness statements, including records of noteworthy telephone conversations, informal meetings and other milestones, it examines crucial questions like: How did Cyprus become so systemically important to the rest of the euro area? Why was Cyprus treated so differently in comparison to other peripheral countries in Europe? Why were bank depositors targeted? What role did Cyprus’ links with Russia play in the design of the programme? What has been the toxic fallout from the bail-in? Are there any longer-term implications for the euro? What are the lessons for regulators around the world? The book will appeal to readers interested in financial crises, the euro’s architecture, the evolution of the European Monetary Union, and those with an interest in how Europe and the IMF dealt with crises in peripheral European countries. Front Matter ....Pages i-xviii Baptism of Fire (Panicos Demetriades)....Pages 1-10 Entering a War Zone (Panicos Demetriades)....Pages 11-29 A German Question (Panicos Demetriades)....Pages 31-39 Buying Time (Panicos Demetriades)....Pages 41-49 “Two” Big to Fail (Panicos Demetriades)....Pages 51-61 Too Big to Save? (Panicos Demetriades)....Pages 63-67 A Russian Playground (Panicos Demetriades)....Pages 69-74 A Bank Run and a Tearful Agreement (Panicos Demetriades)....Pages 75-79 The Euro at Breaking Point (Panicos Demetriades)....Pages 81-87 Illusions (Panicos Demetriades)....Pages 89-93 Taxing the Poor (to Protect the Rich) (Panicos Demetriades)....Pages 95-105 Heading Towards the Abyss (Panicos Demetriades)....Pages 107-119 “Take It or Leave It” (Panicos Demetriades)....Pages 121-127 Resolution and Capital Controls (Panicos Demetriades)....Pages 129-146 Toxic Fallout (Panicos Demetriades)....Pages 147-164 The Final Act (Panicos Demetriades)....Pages 165-177 The Key Ingredients of the Crisis (Panicos Demetriades)....Pages 179-194 Lessons for Europe and Beyond (Panicos Demetriades)....Pages 195-206 Back Matter ....Pages 207-215