Cyprus is a small country that is enlisted in the European Union. The turmoil of the euro zone crisis has been in action since long and the latest effects have hit Cyprus real bad and are as if targeted the country. It was basically a crisis that affected the banking business of the country. Last week a bailout of 10bn Euros had been agreed by the IMF and the EU for the curing of the economy. The bailout deal of the country with the IMF and EU has brought many other small economy countries into light. It received €10 billion as the bailout amount on last Monday to combat the present state of crisis. As per the deal, the second largest bank of the country was forced to close as it was found responsible for about 40% losses. The financial condition of the banking sector might now be stable but the problem doesn’t end now as most of the experts predict that some other countries too might get in to a situation they need and demand for a similar bailout. The question arises as which would be that next country?
Jose Manual Barroso, European Commission President, said on last week in Moscow that the unsustainable financial system was the cause for crisis in the country. He added further that this financial system needs to adapt to the conditions and lacks in ability to work through its own ways. Cyprus won’t be the last country in the euro zone to be in need of a bailout as per the Reuters poll. As per the poll, Spain and Slovenia are the countries likely to hit a recession. The capital controls seem to appropriate to stabilize the condition but may not last for more than a few months. Other small economies in the euro zone are expected to come across a similar condition. The big question that arises now is that which would be the next country to face crisis? Below are some suspects along with possible reasons that may drag them to a similar situation.
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