Cyprus is “giving back” other peoples’ money. Cyprus is a European Union member state. Cyprus is being forced to confiscate deposits by the EuroGroup, which are all the various heads of the central banks in EU member states. If no one can see how this will destroy trust in the financial system of the EU as a whole, there’s a really big train wreck coming. I don’t think they’re quite that stupid. Arrogant, yes. Stupid, no. Not on the whole.
From what I understand over 50 percent of the depositors are Russian. If so, it’S likely that a large number of the rest are in sympathy with Russia and what the Russians are doing there. AGain, if they want a bailout I don’T see problem with them giving something in return.