Economic Crisis In Cyprus Dissertation Example | Topics and Well Written Essays - 1500 words

Economic Crisis In Cyprus - Dissertation ExampleResearchable Context The study is going to examine how competition and subjoind public and snobbish debt contributed to the Cypriot financial crisis. It would also examine the rescue model that was used in Cyprus in the scotch crisis, bail-in of the Cypriot banks imposed by Euro group, and what it could have been done by the government and banks to avoid this situation. It would also will recommendations to avert the financial crisis.The rationale for the study Over the last decade, the Greek government has borrowed greatly from worldwide markets in order to pay for its trade deficits and budget. Investors became nervous that the public debt was soaring high, which drove up Greeces borrowing be. With the banking systems in Cyprus were experiencing intense pressure they amassed 22 billion of Greek private sector debt. This increase in public and private debt reduced frugal growth plunging the country into a crisis (Faustman and Ka ymak, 2013). This market matter to is what initiated the study to examine how public and private debt contributed to the Cypriot Eurozone crisis.Although Cyprus had been experiencing rising living standards before the commencement of the economic crisis in 2012, serious problems surfaced in the Cypriot banking sector as early as 2011. Cyprus borrowing costs slowly increased due to its exposure to the Greek debt (Theophanous, 2013). Furthermore, the public debt that was owned by the foreigners increased thusly making the economy unsustainable thus creating the crisis. High public debt is very detrimental to economic growth.