Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
The EU has ordered Cyprus' government to freeze all bank deposits above 100,000 euro.
It comes equal to total confiscation.
The fact that depositors cannot get to any of their money above the sum of 100,000 euro, will cause panic among people investing in eurozone countries, including firms and businesses.
Nigel Farage was right: he said recently on Russia Today, that people would be mad to invest in the eurozone.
From Sky News:
"The plan will see the creation of a "good bank" and a "bad bank". The Popular Bank of Cyprus, known as Laiki, will effectively be shut down.
Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt."
"with the package requiring a full "bail-in" of uninsured depositors, which is likely to mean heavy losses for those with large holdings in Laiki and potentially Bank of Cyprus"
http://news.sky.com/story/1069277/cyprus-rescue-deal-wins-eurozone-approval
Which country is next?
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
if you say so alex.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
I cannot find the thread, but I did mention recent proposals from the Government of New Zealand that went along much the same lines as this. What may be different, as far as I can tell from what you have written Alex, is that the investors in and shareholders of, the banks in question would lose all their stake first and only then would the frozen assets of depositors be accessed to make-up any short-fall.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Tom, the shock has still to sink in and manifest itself.
There will be financial and diplomatic repercussions.
Having 200,000 euro in savings and losing half of it is entirely different to being super-rich and undergoing a financial trimming. Super-rich could be having at least 100 million pounds in private assets, for example.
This, what the EU commissars have decided over Cyprus, is sheer THEFT!
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
only a third [1/3] alex.or more simply 30%.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
The 30% figure, Brian, is a provisory estimation. To start with, all savings over 100,000 euro in Cyprus's main banks are blocked, and it's not known how much of that will be confiscated.
It could be blocked for years, and it could be all confiscated. No guarantee above 100,000 euro.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
alex,30% is 30%,a one off payment.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Do you really believe this, Brian?
Many Cypriots believe no-one from abroad will invest anymore in Cypriot banks, and that many of those which have will take what's left of their deposits so soon as they become unfrozen.
But when will these deposits be made available again to their holders? Will it be ever? May-be not.
It could be 100% loss.
Cyprus off-shore gas exploitation won't commence before 2019, and the Cypriot government has banked everything on these gas reserves. But gas production won't bring in billions of euro in just 3 days.
Effectively, it has dawned on the Cypriots that when their gas production should ever be in full swing, the revenues would go to pay off the EU 10 billion euro bailout and possibly the billions of confiscated euro, plus all the interest.
Yes, Brian, the Cypriots have grasped that their gas reserves have just been signed off! They may as well have sold the offshore gas field lock, stock and barrel!
It's still dawning on them, Brian, and when the shock has sunk in, then the anger will come up.
Expect something!
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
alex calm down its only a one of bail out,if i had 30% of savings to spare i would give to cypres willingly.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
Yeah right Brian, I'm sure the Cyprus situation is of paramount importance to you, lets be honest, none of us give two hoots about economic woes elsewhere, we're all too wrapped up in our own problems.
Besides, this isn't about "spare" money, its indiscriminate state theft, it is utterly unfair and wrong.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barry/david,it would be a donation rather than theft.giving the same amount to the uk goverment would be theft.
Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
Sorry Brian I don't follow that
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
david,the coalition are worse than ronnie and reggie [cray twins], .
Guest 698- Registered: 28 May 2010
- Posts: 8,664
Alex makes the obvious point in post 8. Either controls will have to be imposed, or there will be a fatal run on the Cypriot banks, once they open again, necessitating further liquidity assistance from the ECB.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
Guest 714- Registered: 14 Apr 2011
- Posts: 2,594
Deary me Brian
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
All banks in Cyprus were supposed to open today, Tuesday, after 10 days' closure.
But they will remain barred until Thursday, as it is expected a bank run will empty the vaults.
Meanwhile, bank transfer restrictions will prevent any meaningful sums being withdrawn and transferred out of the country.
My guess is, the EU, and European Central Bank, will eventually drop repayment of at least a substantial part of the 10 billion euro bailout, and let Cyprus off. They did similarly with Greece.
So perhaps this is the last bailout the EU are prepared to do, and wanted to make it so difficult and scary, that no bank or country in the eurozone ever dare again to ask for a loan.
Because we all know that neither Greece, nor Cyprus, nor Spain can repay their loans to the German/French and other banks that lent it to them.
The command will simply be, from now on: "save yourself", or, "each man save himself", with no bailout forthcoming.
At least, that's my opinion.
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
If that was the case Alexander, I'm sure most "weak" countries would just leave the Euro, devalue their currency and limp along as best they can.
Because the EU and the Euro is an ideology, like most ideologies, it won't last forever, but will destroy a number along the way.
Roger
Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
It can be seen as theft, but i didnt hear any alternative
ALL POSTS ARE MY OWN PERSONAL VIEWS
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
Could it be also be seen as another way to retrieve avoided and evaded tax ?.....
