Better - maybe. Better for whom is what matters tho’.
I, for one, am in favor of the rule of law. Last week’s agreement would have thrown that out the window by imposing cuts on depositors who had their accounts 100% covered by deposit insurance (those with less than 100,000 euros on deposit.) Those were also mostly actual Cyprus citizens, who were a bit peeved.
Yesterday’s agreement follows the contractual terms those depositors have, and only affects those with accounts over 100,000E, i.e., the amount that is not insured against bank failure. Plus, all bondholders take a hit, with junior taking more of a hit than senior. This is how it should be.
Mind you, it’s no fun for anyone involved, but it follows established law and is much more orderly than the mess Merkel and her finance lap-dog threw together last week. Except for the possibility that Parliament might say “You can’t do that!” But I think they’ll punt.
I guess I hadn’t thought that through. This does sound like a fairer deal. It also angers less people. Now I’m interested to see where it goes from here...what, if any, will the repercussions be?