Cyprus should fear bailout fund

Cyprus became the fifth country to seek assistance from the euro bailout fund on Monday after the country's banking sector has come under increasing pressure owing to its close financial ties with Greece. The liberal daily Phileleftheros fears that Cyprus will pay a high price for this help: "The fund is on the one hand a bailout mechanism, but on the other a mechanism of subjugation. And this doesn't bode well for countries that are forced to make use of it. In the beginning the bailout mechanism is relatively flexible, but it becomes increasingly unbending. The best example of this is Greece. The creditors are just doing their job. And so usury is a standard practice. … Once the usurious interest rates have landed you in a situation of complete dependence the creditors' terms of repayment become merciless. The relationship becomes the equivalent of that between a drug dealer and a drug addict! The measures are tough and humiliating."

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