Can Natural Gas Cure Cyprus Banking Crisis?

MarketWatch reported that the island of Cyprus, which finds itself in the middle of the latest Eurozone crisis, is banking on natural gas to cure its financial owes. According to experts, Cyprus could be sitting on natural gas reserves worth up to $388 billion. Those reserves, however, are yet unproven. Regardless, President Nicolas Anastasiades has plans that include these reserves to prevent a run on banks.

As quoted in the market news:

Those who keep deposits in domestic banks for the next two years would be given bonds linked to the natural-gas reserves. Banks in Cyprus are closed until Thursday at least, and the Cypriot parliament will reconvene on Tuesday to debate a controversial bank tax as part of the bailout announced over the weekend.

Cyprus’s bailout includes a levy on bank deposits, which got markets worked up worldwide on fears similar moves might be in store for such larger, ailing economies Spain and Italy.

Click here to read the full report.