Team Members: Kamalam Shri Durga Adityan Sriram Venkatesan

Cyprus

has adopted the euro. CYPRUS STOCK MARKET (CYPRUS GENERAL)

GDP of Cyprus is 22.98 Billion Dollars.

The GDP value of Cyprus represents 0.04 % of the world economy. CYPRUS GDP ANNUAL GROWTH RATE IS -4.3. Industrial Production in Cyprus decreased 16.80 percent in May of 2013.

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inflation rate in Cyprus was recorded at 0.08 % in June of 2013.

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Exchange Reserves in Cyprus decreased to 658.60 EUR Million in June of 2013 from 734.20 EUR Million in May of 2013.

Cyprus recorded a Government Debt to GDP of 85.80 percent of the country's Gross Domestic Product in 2012.
Cyprus recorded a Government Budget deficit equal to 6.30 percent of the country's Gross Domestic Product in 2012.

Cyprus
Major exports: Petroleum oils, refined (21%), Medicaments, packaged (13%), Transistors, semiconductor devices; (7%), Citrus fruits(5%), Cigars (2%) ,

Major imports:

Petroleum oils, crude (23%), Cruise ships and similar vessels for the transport of persons (13%), Cars (6%), Other furniture and parts (2%) Greece (23%), United Kingdom (19%), Germany (12%), Egypt (7%) Greece (19%), China (18%), Israel (8%), United Kingdom (8%), Germany (7%)

Major trade partners (exports):

Major trade partners (imports):

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It's an island and a member of the EU, but it's also a tax haven. Those low taxes have made it a popular place for rich Russians to put their cash. The result of all this money going into Cyprus was predictable: the banks grew to a ridiculously large size, with assets being 8 times larger than the national GDP. The big Cypriot banks made a really bad investment. They lent money to Greece. When the Greek economy took a dive, the Cypriot banks took a bigger gamble, buying up Greek government bonds in the hopes of a bailout. Now they're broke. The banks owe more money than they have. In fact they owe more money than the country's GDP.

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Even though the EU/IMF was lending 10 billion, that still wasnt enough to pay for the entire bailout. An additional 7 billion was needed, and the EU was making Cypriots pay for this remaining amount out of their own pockets. 1.2 billion of that would come from the government austerity measures, such as cuts to spending and raising taxes. The remaining 5.8 billion would come from imposing a tax on Cypriot bank accounts. For people with accounts over 100,000 the tax would be 9.9%, while accounts below that number would be taxed 6.75%.

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 Fearing

the government was coming for their cash, Cypriots ran to the bank. The government declared a national holiday and closed the banks, so everyone ran to the ATM outside the bank. There were restriction on how much cash could be withdrawn, but that didn't stop people from waiting in long lines to get what they could of their money.

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 S&P

Rating CCC Moody's rating B3 Fitch Rating BB Extremely

speculative.

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