S&P says Cyprus deposit grab may set eurozone precedent

The grab on bank deposits that accompanied Cyprus’s bailout could be repeated elsewhere in the eurozone, and the bloc’s banking union may not be strong enough when it is introduced, ratings agency Standard and Poor’s said on Wednesday.

“We believe that the events in Cyprus highlight the increased reluctance of financially stronger eurozone countries to make their taxpayers’ funds available to recapitalize banks outside their home jurisdictions,» S&P said in a report.