Apparently that is one of the reasons Russia did not bail out Cyprus i.e. they want those funds repatriated...
I guess Countries shy away from bailing out "states" or those that have no control of their monitory policy, there may be too much risk? If so, A bail out from an outside country typically would be done through the EU as a whole.
Lets assume that money printed is held by people. It can be paid back but the interest is missing. how can you fix the problem ? You take the money that people have been hoarding, or steel it. and bring it back to the economy, this creates demand and sales and jobs. now you do not have to print ! well maybe you need to print enough to cover the interest. The problem started when people heard the word trillions. That was ENOUGH ! they said. we cant take it now ! we did not keep track of the printing but since we do not know what comes after trillions we will panic and stop this! Great, stop away, what options are left? let people hoard money and have no money in the economy ? Take their money ? make it so that people or politicians cant control or put a cap on printing ? The system was based on exponential growth of the money supply to allow for interest payments. Stop it before it tops ? ! fortunately it is not gold or a stock and is limitless. people cant grasp that. so they stop the exponential growth to avoid a possible problem that may not even exist or a solution can be found. The remedy for the stop in the growth must be exponential to make up for the stop. out goes your saving, out goes control of money supply out goes low unemployment out case non austerity. it is all gone. take away freedom as a good measure. and then people retaliate. we want you to print ! print! oh sorry we gave away everything, you made us sell it so that we don't have to print remember? There is no problem yet, why bring it upon our selves? cause doing so now is better then later ? Later is always better as we can fix, now is always bad cause we are stuck with a difference of opinion and politics. where is the inflation ? if it scares you just but gold. why stop printing ? either way if you are loaned some paper money, it is likely you need to give it back. its not like you produced anything and traded it like the farmer. Farmers like to make money too. Any one have a link to a youtube about the end effects on price to consumables in cyprus ? Id laugh so hard if inflation was in the picture. what a slap in the face that would be !
Tom Keene's favorite economist Athanasios Orphanides refuses to accept reponsibility http://www.cyprus-mail.com/cyprus/orphanides-they-trashed-banks-win-votes/20130518