Cyprus: investors slam 'crazy' bailout Panicos Demetriades, the governor of Cyprus's central bank, told parliament: "I suggest we work on the numbers again, if we don't we will be unable to rebuild trust among depositors because we have broken our contract with them." The rethink calmed traders and caused stock markets to recover some losses by the close. But investors and analysts remained troubled. Tristan Cooper, a fixed income sovereign credit analyst at Fidelity, said: "The craziest thing about the Cyprus announcement is the huge potential cost of undermining the spirit of the bank deposit guarantee for what is a small saving in the overall scheme of European finances. Even if policymakers now row back from taxing small depositors in Cyprus, the damage has been done. Analysts at Credit Suisse said: "These events are likely to weaken the pro-EU political centre in yet another country. As elections in Greece and Italy have shown, the risk the economic and financial crisis is exposing is a steady rise in support for new and radical political parties in the periphery, for whom membership of the euro is not a necessity. Such a trend now looks inevitable in Cyprus. In a statement on Monday night, the EuroGroup said that Cyprus must guarantee deposits below €100,000. The deposit tax was aimed at raising €5.8bn as part of the bail-out agreement and was apparently requested by Germany and a group of creditor countries. Sources said the plan was designed to ensure EU funds were not used to bail out foreign depositors. As well as British servicemen, holiday reps and expatriate pensioners, Cypriot banks have attracted thousands of Russian clients but have gained a reputation for harbouring money launderers. Over the next week, some of the weaker economies are planning to tap the bond markets for cash. Greece plans to sell €1bn of bonds tomorrow and Spain has a short-term auction, followed by the sale of 10-year debt on Thursday. It is Portugal's turn on Wednesday and Italy's on Monday.