2012–2013 Cypriot financial crisis

This resulted in numerous insinuations by US and European media who presented Cyprus as a "tax haven" and suggested that the prospective bailout loans were meant for saving the accounts of Russian depositors.

[8] The United States' subprime mortgage crisis in 2007–2008 led to a domino effect of negative consequences in the global economy including the European Union.

The Cypriot state, unable to raise liquidity from the markets to support its financial sector, requested a bailout from the European Union.

Since January 2012, Cyprus had been relying on a €2.5bn (US$3.236 billion) emergency loan from Russia to cover its budget deficit and refinance maturing debt.

The loan had an interest rate of 4.5%, with no amortization/repayment until its maturity after 4.5 years, and no penalty if repayment at that point of time was delayed because Cyprus still lacked access to the normal funding markets.

[25] Anastasiades refused to agree to potential losses on large deposits, many held by Russians, in contrast to the Europeans who saw them as necessary haircuts.

[24] German negotiators in fact believed that Laiki and the Bank of Cyprus were already de facto insolvent and would need to be bailed-in by part of these large deposits.

Infighting amongst politicians was blamed for the delay, although official sources claimed the legal department of the parliament had not finished drafting the laws.

[25] Additionally, the Financial Times reported that EU officials such as Olli Rehn, European Commissioner for Economic Affairs, and Jeroen Dijsselbloem, president of the Eurogroup, were now convinced that "massive capital flight" was unavoidable and thus overcome their previous opposition to the Icelandic solution.

On 8 November 2012, the Cypriot far-left party Committee for a Radical Left Rally (ERAS) organized the first protest against austerity while the Troika negotiations were still taking place.

[37] Haravgi, a far left-wing newspaper, reported that just before bank deposits were blocked, a number of companies belonging to the family of President Anastasiades have transferred over $21m outside of Cyprus.

[40] Non-resident investors who held deposits prior to 15 March 2013 when the plan to impose losses on savers was first formulated, and who lost at least €3,000,000, would be eligible to apply for Cypriot citizenship.

"These decisions will be deployed in a fast-track manner", President Anastasiades said in an address to Russian business people in the port city of Limassol in 2013.

[43][44] Among firms reported to be dealing in Cyprus bank debt was London-based Exito Partners (formerly Éxito Capital)[43] and Swiss-based Black Eagle Litigation Fund.