FINANCIAL services have been a big earner for the Cyprus economy. In fact, the sector is the biggest contributor to GDP and has been more important to the economy than tourism for well over a decade. Yet the authorities have always taken it for granted, seemingly unable to grasp the devastating effects an exodus of international businesses would have on the economy.
Suffice it to say that a top executive of a Cypriot bank recently told staff that if foreign businesses withdrew their money the bank’s business would be halved. And when we consider the contribution of Cypriot banks to GDP we could only shudder to think about the consequences of a mass outflow of funds.Read More