Cyprus faces years of suffering: analysts
Cypriots face years of economic hardship due to a harsh eurozone bailout deal, while the Mediterranean island's future in the single currency remains deeply uncertain, analysts said Monday.
The fallout will begin immediately with food and medicine shortages likely in coming weeks as businesses struggle with a lack of cash in Cypriot banks, which were hammered by the agreement, said economic experts.
The tiny nation then faces two years of deep recession coupled with soaring unemployment, with few hopes of longer-term recovery as Russians and other foreign investors will steer clear of its devastated financial sector.
Mullen, a partner at Strata Insight energy policy risk consultancy, said capital controls including drastic limits on withdrawals from bank ATMs were likely for several weeks.
"That means it's difficult for businesses to pay salaries and buy goods and things like that," Mullen said, adding that the impact of this had "not been thought through."
http://www.globalpost.com/dispatch/news/afp/130325/cyprus-faces-years-suffering-analysts-0