Julia Coronado, chief economist with the investment bank BNP Paribas, joins Marketplace Morning Report host Jeremy Hobson to explain how Cyprus is guarding itself against a bank run.
Odds were pretty high some kind of deal on Cyprus was going to get worked out this weekend. But, economic life in Cyprus will likely get worse before it gets better.
Eurozone finance ministers reached a last minute deal to grant Cyprus a $13 billion bailout early this morning. Those with large deposits in Cypriot banks could be hit will a tax of 30 percent in order to help fund the bailout.
The European Central Bank has given the Cyprus just a few days to come up with a new bailout deal after the Cypriot parliament rejected a controversial tax on bank deposits as part of its original bailout plan.
Britain's budget, released today, contains more deep spending cuts. Nobel-winning economist Paul Krugman argues that austerity policies in the UK and Europe are killing growth.
Cyprus is in turmoil following the decision last night by its parliament to reject a bailout plan from the eurozone. The plan entailed a one-off tax of up to 10 percent on Cypriot bank accounts.