If the sovereign were to shoulder this burden, on top of already strained public finances, public debt sustainability would be critically endangered. Burden-sharing with private investors was not only inevitable, but it also significantly reduced the financial impact on Cypriot taxpayers and protected the vast majority of depositors.
I wouldn’t expect this to happen again in any other place, given that the Bank Recovery and Resolution Directive now requires banks to build a significant buffer of so-called “bail-in-able” debt, meaning that investors will be hit before depositors have to pay.