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Cyprus bailout to be reversed?

Cyprus' president has asked euro zone leaders and IMF to review the conditions of the March 10 bln euro bailout, warning Nicosia may not be able to meet the rescue's terms because it has harmed the country's economy and banking system even more than expected.

In a letter written last week, Nicos Anastasiades wrote that the restructuring of the country's two largest banks, was "implemented without careful preparation", wiping out the working capital of many Cypriot companies and requiring unprecedented capital controls that were suffocating the economy.

"The economy is driven into a deep recession, leading to a further rise in unemployment and making fiscal consolidation all the more difficult," Mr Anastasiades wrote. "I urge you to review the possibilities in order to determine a viable prospect for Cyprus and its people."

The situation in Cyprus is expected to be discussed on Eurogroup meeting on Thursday. However, it is very unlikely that the reaction if EU officials will be positive - essentially, Mr Anastasiades is asking to reverse the program. 

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