Cyprus bailout: what next? Implications for investors

Recent events in Cyprus¹ have understandably caused consternation in the markets and we expect our clients to have a number of questions following the announcement of the EU bailout agreement on Monday 25 March 2013 including but not limited to:

• What will be the impact of proposed capital and exchange controls?
• What might be the risk to assets and property located in Cyprus?

The answers to some of these questions (e.g. exchange and capital control risk) will depend on the detail of the legislation implemented when known but to the extent we have some information we are updating our Eurozone risk matrix to identify what we see as some of the legal issues facing Cyprus.