What was 2013 Cypriot Banking Crisis

The Cypriot Banking Crisis in 2013 was a situation in which a lack of financial transparency inhibited European authorities and the IMF from effectively addressing a bankruptcy issue in the country of Cyprus. Banks in Cyprus had been holding very large foreign deposits, mostly made by Russian Oligarchs. The banks invested these deposits in Greek bonds and real estate, both of which lost tremendous value as a result of the larger Greek debt crisis. As a result, European authorities and the IMF were tasked with implementing measures to keep the banks from failing. They decide to impose taxes on all bank deposits in Cypriot, at two separate rates depending on the size of the account.