A day after Cyprus struck an 11th hour bailout deal with international creditors, economists warned of the devastating impact it would have on the Cypriot economy as ordinary Cypriots attempted to come to terms with a new reality.
"Our Cypriot GDP (gross domestic product) forecast entails a drop of just over 20 percent in real GDP by 2017. This forecast had already factored in much what was agreed, but did not account for the additional uncertainty shock generated by the past week's appalling political mess. Risks are clearly on the downside and Cyprus will in all likelihood require additional financial assistance further down the road," Societe Generale analysts wrote in a note on Monday.
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UBS Investment Bank was similarly downbeat, saying "the country is likely to enter a deep recession caused by the shrinkage of the banking sector and severe deleveraging."
Meanwhile, the picture on Nicosia's streets was deceiving. Hundreds of teenagers and young families were leisurely walking the streets to celebrate the country's national day. A long parade flanked by cheering onlookers wound through Nicosia's streets.
Florendia, Eleni and Katherina, aged 15, told they "feel like crying". They know that their parents are worse off after the banking restructuring. "In the future, what are we going to do? My grandma was saving money for me, but now that money is gone".
The high school students say their pocket money has fallen by around 20 percent and they're no longer spending money as freely as before. Now their lunch is a cheap take out lunch.
The worst thing, they feel, is that "it's not our fault, or that of our parents. It's the politicians and the bankers who are taking our money."
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A local supermarket owner is unsure what the future will bring. "It's hard to say what will happen to my business. But do I think sales will fall even further? Yes, most definitely."
Others, however, are more sanguine about the deal.