The Estia Debacle

3 Pages Posted: 27 Jul 2018

See all articles by Savvakis C. Savvides

Savvakis C. Savvides

Queen's University - John Deutsch Institute for the Study of Economic Policy

Leslie Manison

Independent

Date Written: July 5, 2018

Abstract

The long awaited and recently proposed Estia legislation in debt stricken Cyprus apparently turns out to be a dubious scheme benefiting certain borrowers and heavily subsidizing the Banks but all, yet again, at the huge expense of the law-abiding tax-payer.

The whole scheme is clearly hastily put together without too much thought or any serious research on how it would affect various economic groups and of course the tax payers. Who benefits and who pays from such a poorly and badly constructed scheme? Moreover, it is not well thought out as it would hardly be easily implementable and surely not helping in reducing the enormous private debt in the economy. As it is, it raises more questions than answers.

Keywords: repayment capability, project evaluation, corporate lending, credit risk

JEL Classification: D61, G17, G21, G32, G33, H43

Suggested Citation

Savvides, Savvakis C. and Manison, Leslie, The Estia Debacle (July 5, 2018). Available at SSRN: https://ssrn.com/abstract=3209292

Savvakis C. Savvides (Contact Author)

Queen's University - John Deutsch Institute for the Study of Economic Policy ( email )

Canada

Leslie Manison

Independent ( email )

No Address Available

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