The Cyprus effect is a decision made to obtain financial aid and to prevent the island nation of Cyprus from going bankrupt. Just three weeks into the job, and Nicos Anastasiades, the Cypriot president, is tackling the nation's debt crisis head-on, saying he had no choice but to force savers to forfeit up to 10 per cent of their deposits to avoid a catastrophic banking collapse. Cypriots themselves are furious and they have responded by trying to clear out their accounts. People with savings of less than $130,000 will pay a one off tax of 6.75 per cent. Those with anything more in their accounts will forfeit 9.9 per cent of their savings. The Gross Domestic Product (GDP) was worth over $24bn in 2011 - and the proposed bailout is more than half that figure. The levies would generate $7,5bn - with depositors being compensated with the equivalent amount of bank shares.

Pray: that the moves by the government will have the desired effect and bring stability to the country.

More: http://www.aljazeera.com/programmes/insidestory/2013/03/201331862719774592.html