'Much Worse than Greece' IMF Demands Partial Default for Cyprus

Euro-zone member state Cyprus badly needs a bailout, but the International Monetary Fund is demanding a debt haircut first, according to media reports. The resulting standoff with Europe has delayed the country's badly needed aid package. To ward off insolvency, Nicosia has raided the pension funds of state-owned companies.
Anti-austerity demonstrators clash with security personnel in Cyprus in December.

Anti-austerity demonstrators clash with security personnel in Cyprus in December.

Foto: Katia Christodoulou/ dpa
cgh -- with wire reports