Cyprus The Latest Country To Get A Bailout

Image: Washiucho
Image: Washiucho

Cyprus is the latest country to require a financial “bailout” from other European countries to keep its banks and economy from collapsing.

Like Greece, which was bailed out of an economic crisis last year, Cyprus is one of 17 countries in Europe that uses a type of currency, or money, called the Euro.

The problems for Cyprus began with the country’s banks, which loaned money to people who didn’t pay it back. Governments of other countries that use the Euro became nervous that Cypriot banks would fail if they were re-paid, and that the problems could spread to their countries.

But before lending Cyprus the money needed for economic survival — 10-billion euros — the other countries wanted the government of Cyprus to promise to follow their rules about spending, and to agree to combine the country’s two biggest banks into one bank.

In order to get the loans, the government of Cyprus agreed. This meant agreeing to take some money away from people who have accounts and investments in those banks. While final details of the bailout are hammered out, bank customers also have limits on how much money they can take out of the banks each day, and when they travel.

Perhaps understandably, many people is Cyprus and foreigners who have bank accounts there — including many Russians — were unhappy with these promises.

By Jonathan Tilly

Writing/Discussion Prompt
The government of Cyprus has said it will take some of the money belonging to its investors to pay off its debt. Many people with these bank accounts have been angered by this and feel betrayed by their government. And, while many Canadians think that this couldn’t happen here, Canada’s recent budget has many experts thinking that it could and would. Do you think the government should have the ability to take money from the people who have bank accounts? Why or why not?   

Reading Prompt: Comprehension Strategies
Teaching Kids News has covered the European economic crisis for over a year. How has your previous knowledge on this topic helped you to understand today’s article? How is it similar to previous stories you have read on TKN? How is it different?

Identify a variety of reading comprehension strategies and use them appro- priately before, during, and after reading to understand texts (OME, Reading: 1.3).

Identify a variety of reading comprehension strategies and use them appropriately before, during, and after reading to understand increasingly complex texts (OME, Reading: 1.3).

Grammar Feature: “I” before “E” except after “C”…
One of my all-time favourite rhymes is: “I before E except after C or when sounding like A as in neighbour or weigh.” It’s really catchy and it helps writers spell tricky words like, ceiling, receiver, believer, and friend. But today’s article contains a word that doesn’t follow this rule, “foreigners.” For this reason, as helpful as it is to have tricks to help remember spellings and grammar, it’s also important to know that they’re tips, and that there are always exceptions.

Circle the correct spelling of each word below and underline the words that are exceptions to the “I before E” rule.

1. Biege, Beige, Bage
2. Wierd, Weerd, Weird
3. Recept, Reciept, Receipt
4. Aight, Eight, Ait, Ieght
5. Society, Socity, Sosiety
6. Naybour, Nieghbour, Neighbour, Neighber, Nieghber
7. Their, Thier, Thayr
8. Hite, Hieght, Height, Hyte
9. Vayn, vien, vein
10. Proteen, Protein, Protien