Question Author
Strange Answer New Judge, can't say I agree with any of it.
Cyprus' problems are due to the EU's solution to the Greek Financial Crisis.
// EU leaders thought that it would be a good idea to "solve" the fiscal problems of Greece by making private bond-holders "agree" to a "voluntary" write-down of the value of its debt- The problem is that one institution's debt is another's asset, and with Cypriotic banks heavily invested in Greek debt due to Cyprus' close ties to Greece, this meant that Cypriotic banks made heavy losses. In short, the "solution" to the Greek problem caused the Cypriot problem we're now discussing. //.
In short, the Cypriot bankers put all their money into Greek Bonds and then the EU devalued them. Nothing to do with currency conversion rates or EU membership, more to do with bankers getting their bets wrong - again.