Is the Cyprus bailout doomed already?
The board of the European Stability Mechanism is due to convene via teleconference within the next few days in order to formally approve the Cypriot bailout, opening the way for the disbursement of the first tranche from the 10-billion-euro emergency loan package backed by the EU and the IMF. But is the new deal doomed to fail? Kathimerini discussed the issue with several economic analysts who have been following the case closely. They all seem to agree that the troika’s projections regarding the Cypriot recession are optimistic. The emergence of a funding gap, a second bailout and some form of Cypriot debt restructuring, are almost unavoidable, they claim.