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The latest Cypriot plan is said to involve transferring smaller accounts from Cyprus Popular Bank, or Laiki, into the healthier Bank of Cyprus.
The latest Cypriot plan is said to involve transferring smaller accounts from Cyprus Popular Bank, or Laiki, into the healthier Bank of Cyprus.
(JOHN KOLESIDIS/REUTERS)

BREAKINGVIEWS

Math doesn’t add up on revised Cyprus rescue plan

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Cyprus’s second attempt at a rescue plan was targeting a more deserving cast of victims. The island’s parliament, which blocked the tax on small savers earlier this week, was called to vote on a new scheme. Stuffing large depositors of the country’s second-largest lender into a bad bank was fairer than the original proposal. The scheme’s main problem is that it has so far failed to convince Cyprus’s euro zone partners.