[srid68]

They could have made the bank bond holders (rich foreign banks) take losses without affecting the normal depositors.

How can you think getting a bigger loan to pay current loan is a good strategy. It will work only if the economy improves. If the economy tanks, it is not going to work. It is only going to increase the losses for the lenders ultimately.

[seanmcdirmid]

There were no foreign rich bond holders to punish. Cyprus took more money in then it could possibly ever use (as haven like Iceland), and then bought Greek bonds with it. The only creditors here are depositors. So...

[wintersFright]

the lenders are - ultimately - the depositors.