but Iceland was different; the g'ment was bust and refused to pay creditors.
Actually the Icelandic Government did not refuse to pay its creditors (there is a whole load of BS you hear about Iceland that isn't true), they refused to bail out non Icelandic depositors because they didn't have a depositor protection scheme with money in it.
Cypriot banks have been in a race for the past couple of years to generate Tier One capital (liquid money) in order to meet EU banking regs
Then they are as stupid as the Icelandic banks because depositors funds are not Tier 1 or any other part of the banks capital they are liabilities - not assets.
That is why there could be riots!!
It takes 48hours without food before riots start. I think most people have enough food at home to last a good few days before starvation sets in.