While the country may be too small to have a meaningful direct impact on the rest of the euro area, the big issue for markets is the potential for contagion to more systemically important countries.
Cyprus is a small economy, with nominal GDP last year of just €18 billion (US$23 billion) or 0.2% of the euro-area total. So while Cyprus’s bailout may seem small in euro terms, it is huge relative to the size of its economy.
Click here to read more