"The new Cypriot government (and ironically the euro area) should take some inspiration from the hardball way Iceland dealt with the Icesave situation in 2008. Like Iceland, whose banks opened up overseas Internet-based deposit-seeking banking operations in the United Kingdom and the Netherlands, Cyprus has an unusual high proportion of foreign depositors in the banking system taking advantage of numerous legal and tax shelter reasons. (The Cypriot corporate tax rate at 10 percent is LOWER than in Ireland!) In 2008 the Icelandic government refused to honor the deposit guarantee to the bankrupt Landsbanki’s overseas online savings account holders in the United Kingdom and Netherlands, which amounted to 60 percent of Icelandic GDP. As a result, British and Dutch authorities stepped in to safeguard financial stability and reimbursed their nationals."
Jacob Funk Kirkegaard i Real Time Economic Issues Watch om hanteringen av finanskrisen på Island, Irland och Cypern.
