- The case of Cyprus five years after the bail-in of bank deposits
As pointed out in a recent IMF report,[1] “private sector indebtedness in Cyprus remains extremely high”.
- Savvas Savvides
- StockWatch
Politicians and banks, however, continue to present the non-performing loans (NPLs) as being the core problem of the economy.
They argue that reducing NPLs is basically the same as providing a cure to the economy’s woes.
However, NPLs is only a symptom of the real problem of the economy which, as pointed out by the IMF, is the enormous private debt.
Focussing just on…