This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cyprus Looks To Its Past For Economic Reboot

By PAN PYLAS

LONDON (AP) â¿¿ As it grapples with the prospect of years of economic pain, Cyprus will try to draw strength from its not-so-distant experience of invasion â¿¿ and the fact a whole generation knows what it means to rebuild from scratch.

But it's a tough task.

Any inspiration will be badly needed on the small east Mediterranean island nation of under a million people, as even the most optimistic forecasters predict years of recession and sky-high unemployment.

In many ways, the challenge facing Cyprus now following an international bailout that effectively wipes out a hefty chunk of the banking sector is more daunting than recovery from the events of 1974. Then, the island was split into an internationally recognized, Greek-speaking south and a breakaway Turkish north, following Turkey's invasion in the wake of an attempted coup by supporters of union with Greece.

The country's room for maneuver is limited, given that it has already largely exhausted the potential for development from a primarily agricultural state.

And any reboot of the economy of the Greek-Cypriot side â¿¿ the part of the island that has joined the European Union and is afflicted by the recent bailout woes â¿¿ will have to be done within the limitations of a colossal debt mountain, a collapsed property bubble, a sclerotic European economy and a seeming dearth of international sympathy.

"It's an economic tragedy this time and the difference is you don't know where it'll end up," said Andreas Georgiou, 80. "This could stir social unrest, people are worried about their families, putting their kids through school. In 1974, we had support from the outside, our people were willing to go abroad and find work to send money home. But could this happen again?"

Such doubts are on the minds of many Cypriots, even as the resilience shown after 1974 provides grounds for encouragement.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,318.94 -97.91 -0.56%
S&P 500 2,003.42 -17.83 -0.88%
NASDAQ 4,663.6870 -19.72 -0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs