8. Cyprus – Debt Deficit: 108.40% of GDP
From 2012 to 2013, Cyprus suffered from troubled financial sector. It was influenced by many, such as the downgrading of the Cypriot government’s bond credit rating.
The recession started in 2009 with huge falls in many sectors especially shipping and tourism. This led to increasing number of unemployment. One thing led to another, Cyprus bank sector started to suffer from financial pressure.
It was unable to raise liquidity from the markets. Hence, Cyprus requested a bailout from European Union (EU), European Commission (EC), European Central Bank (ECB) and IMF, in return to close its second largest bank, Laiki Bank.
The Greek Government debt crisis also influenced this Cyprus crisis, among other European countries you will find on this list. Until today, Cyprus is still struggling with 108.40% public debt of its $23,263 Gross Domestic Product (GDP).
