The Estia Debacle
3 Pages Posted: 27 Jul 2018
Date Written: July 5, 2018
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: Suggested Citation