These banks were paying unsustainable high rates of interest to depositors, and to earn enough to cover their obligations, the banks invested in higher risk government and corporate bonds paying higher rates of interest. The dangers of a Greek debt collapse have been known since before they joined the Euro, this is why Greece's interest rates were higher than Germany's for many years before the crisis.
Turkish Cypriots must be very happy now that the Greek Cypriots rejected the peace settlement in 2004. Otherwise, they'd likely be bankrupt too.
Turkish Cypriots must be very happy now that the Greek Cypriots rejected the peace settlement in 2004. Otherwise, they'd likely be bankrupt too.