Sunday, September 15, 2013

A non-offer they couldn't refuse

From the Council of Eurozone finance ministers ("Eurogroup") statement on Cyprus --

The Eurogroup welcomes that the Cypriot authorities will continue to gradually relax the administrative measures that had been put in place in view of the unique and exceptional situation of Cyprus' financial sector. Further relaxation will be in line with the roadmap of 8 August 2013.

The statement thus takes as given that it was Cyprus that imposed capital controls and has the choice to relax them.

In fact it's because the European Central Bank refused liquidity support to the country's banks, even though they are now solvent.