European Central Banks report on Cyprus banking crisis.

Government interference with the banking sector in Cyprus resulted in irreversible losses in the amount of 10.5% of the island`s GDP, a European Central Bank report says.

According to CNA, the report explains the Cypriot case as the "worst case" in terms of government support recovery.

The report states that over the period 2008-14 the accrued gross financial sector assistance in the euro area amounted to 8 per cent of euro area GDP, increasing currency union`s debt by 27 percentage points between 2008 and the end of 2014.

The European Central Bank report titled "The fiscal impact of financial sector support during the crisis" said Cyprus suffered the third largest fiscal impact following Ireland and Greece.

Source: Famagusta Gazette

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