Cyprus bank levy: UK to compensate troops and government workers

[dipsydoodle]

6. I see your point

but doing it that way simply saves moving funds round in a circle. Part of the object is to recapitalise their banks. In the absense of available credit their economy will collapse anyway.

There is no sign at present of runs elsewhere - just chatter on the possibilty of subject by the media.

Spain had already overcome the problem by nationalising seven of their banks and then borrowing €31 billion to recapitalize them. Ireland had also did this last month :

LONDON — Ireland sealed a deal with the European Central Bank on Thursday to ease the crippling cost of its public bailout of failing banks, keeping the country on track to wean itself from international emergency loans.

By overhauling repayment of the debts it incurred to rescue its banks, Ireland will be on track by the end of 2013 to be able to borrow money on the open market the way most other governments do. It was effectively shut out of those markets at the end of 2010, when the gaping hole ripped into its budget by the bank bailout forced Dublin to go cap in hand to its European partners and the International Monetary Fund.

http://articles.latimes.com/2013/feb/07/world/la-fg-wn-ireland-deal-bank-bailout-20130207