Following the rejection of Cyprus' initial EU bailout package, Mark Littlewood appeared on BBC Radio 5 to discuss the concept of a Cypriot "bail-in".
Mr Littlewood explained that a bailout involves the government transferring money to a failing bank in order to keep it afloat. A bail-in, on the other hand, means that depositors provide the capital to keep a bank running possibly in return for a share in the bank. The cost to keep the bank afloat is therefore imposed on those who invested rather than the taxpayer. In Cyprus' case, this includes bondholders and those with more than 100,000 euros in deposits.
Listen to the full programme here.  Segment begins at 2:55.08.