- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Could Cyprus be the next domino to fall

GREECE appears to be inching closer to the Eurozone exit door. If Greece leaves, how far could the contagion spread?

One country which could very soon find itself in the eye of a financial storm is Cyprus – where the banks are paying a heavy price for their investments in Greece.

HARDtalk’s Stephen Sackur speaks to Michalis Sarris, chairman of the Cyprus Popular Bank and former minister of finance. A mountain of banking debt, a weak government, an angry public – could Cyprus be the next domino to fall in this eurozone crisis?

When asked if he had a “growing sense of alarm in Cyprus” at the developments in Greece, Dr Sarris said: “Absolutely; we are heavily exposed to the Greek economy, we have already paid a heavy price for an investment in Greek sovereign debt – more than any other country and especially our bank (Cyprus Popular Bank), which has suffered a loss of about 2 billion euros.”

(The following programme was first broadcast on the BBC News Channel on 18 May 2012)