Cyprus-Forum.com

[denizaksulu]

Im checking to see if you have a clue which i doubt very much.

I'm always open to be educated. With you being the "educator" however, I'm constantly left with disappointments.

Well, somebody had to step in and sort VP out before we all die of old age waiting for him to do it himself.

Cyprus banks are sitting on about 6.4Billion Euros of Greek monetary toilet paper. A haircut will happen, but here's some specifics as Cyprus has one of the lowest levels of public debt in the Eurozone:

"Cypriot authorities and banks say the Cyprus banking system is well capitalised. The system’s total capital adequacy ratio stood at 11.98 percent and its primary capital Tier 1 at 10.3 percent in 2010, figures which are now higher because of capital boosting steps taken by the banks."

http://www.foreignexchangeservice.co.uk ... debts.html

Kikapu, I think we can safely consider VP's unsupported position to be formally debunked. I hope you have a most pleasant Sunday.

Thanks for the info Dinos. Too bad VP couldn't do it since he claims to understand how the banks and finance systems works. Hope you have a great Easter Sunday also.

By the way, Dinos, can Cyprus get Crete for 6.4 Billion Euros in case Greece does default.?

if not, which other Greek island can we take.?

I personally like the sound of Lespos myself.!

ooooooh can we have Kastelloriso instead please.... which'll extend the CY EEZ thousands of square miles.

Come on Bill kastellotizo is peanuts if we can get crete also then Med is ours

OMG! ..... A Greater CY !!!!!??????

OMG........A Micri -Megalo IDEA

[Nikitas]

"Do you know how much your banks have invested in Greek government bonds that are now worthless?"

VP, German and French banks, as well as the European central bank are heavily invested in Greek bonds, today a Greek economic journalist said that over half of Greek bonds are in those hands. Cyprus' holdings are minute by comparison. You think that those major bond holders would ever let their debtor go under?

Secondly you assume that Greek bonds are worthless because now there is a wide spread. There is no certainty this will remain the same. The moment there is any hint of improvement those that invested in bankruptcy will be biting their what nots.

[Viewpoint]

"Do you know how much your banks have invested in Greek government bonds that are now worthless?"

VP, German and French banks, as well as the European central bank are heavily invested in Greek bonds, today a Greek economic journalist said that over half of Greek bonds are in those hands. Cyprus' holdings are minute by comparison. You think that those major bond holders would ever let their debtor go under?

Secondly you assume that Greek bonds are worthless because now there is a wide spread. There is no certainty this will remain the same. The moment there is any hint of improvement those that invested in bankruptcy will be biting their what nots.

You are tiny in comparison to the countries you quote, your investments are worthless and you have a few banks that are threatened by no return on their investments if there was a run on those banks they would go down like a lead balloon.

[CBBB]

"Do you know how much your banks have invested in Greek government bonds that are now worthless?"

VP, German and French banks, as well as the European central bank are heavily invested in Greek bonds, today a Greek economic journalist said that over half of Greek bonds are in those hands. Cyprus' holdings are minute by comparison. You think that those major bond holders would ever let their debtor go under?

Secondly you assume that Greek bonds are worthless because now there is a wide spread. There is no certainty this will remain the same. The moment there is any hint of improvement those that invested in bankruptcy will be biting their what nots.

You are tiny in comparison to the countries you quote, your investments are worthless and you have a few banks that are threatened by no return on their investments if there was a run on those banks they would go down like a lead balloon.

Didn't a number of the pseudo-banks in the occupied areas go down the drain?

[cymart]

As I have often posted before and tried to explain to some naive Greek-Cypriots,Russia supports it's own interests and has never condemned Turkey for invading Cyprus in 1974,for the simple fact that it has mega financial and other interests with Turkey!Rather than encouraging a solution of the Cyprus question,Russia actually finds this dispute very useful because it is a thorn in NATO's side and if Turkey finally turns its back on the E.U. Moscow will be delighted!Further proof is the often vaunted Akoyu nuclear plant scheme which will be very advantageous for Russia(if it is ever built,especially as opposition to it within Turkey is increasing even more...)
All the Russian capital flowing in and out of Greek- Cypriot banks could not of course happen without at least the collusion,if not the participation of the notoriously corrupt and repressive elite which controls Russia and the way some Greek-Cypriots keep brown-nosing them is hypocritical when they always use every chance to moan about Turkey violating their human rights here etc!The world realised long ago that unfortunately most Greek-Cypriots care only about amassing wealth and are not fussy about where it originates from.This I find not only sickening but also very disturbing.......

[CBBB]

As I have often posted before and tried to explain to some naive Greek-Cypriots,Russia supports it's own interests and has never condemned Turkey for invading Cyprus in 1974,for the simple fact that it has mega financial and other interests with Turkey!Rather than encouraging a solution of the Cyprus question,Russia actually finds this dispute very useful because it is a thorn in NATO's side and if Turkey finally turns its back on the E.U. Moscow will be delighted!Further proof is the often vaunted Akoyu nuclear plant scheme which will be very advantageous for Russia(if it is ever built,especially as opposition to it within Turkey is increasing even more...)
All the Russian capital flowing in and out of Greek- Cypriot banks could not of course happen without at least the collusion,if not the participation of the notoriously corrupt and repressive elite which controls Russia and the way some Greek-Cypriots keep brown-nosing them is hypocritical when they always use every chance to moan about Turkey violating their human rights here etc!The world realised long ago that unfortunately most Greek-Cypriots care only about amassing wealth and are not fussy about where it originates from.This I find not only sickening but also very disturbing.......

And the biggest brown-noser is our wondeful President, who your signature seems to support!

[dinos]

Since November, Cyprus has been downgraded by Standard and Poor's twice, once by Moody's by two notches, and Fitch has placed Cyprus on a negative watch. All three have, to varying degrees, cited concerns at Greek exposure, while Fitch and Moody's have also focused on economic structural problems.

S&P, Moody's and Fitch also rated all those American toilet mortgages as top of the line paper. The ratings agencies are little more than paid whores - their assessments of anything at the moment should not be taken seriously. What you should look for to glean a warning of serious problems is a major investor going net short.

Bank debt exposure in the small euro member country Cyprus is now estimated at 35% of it’s GDP and exposure to Greek sovereign bank debt carries a risk to Cypriot banks and threatens it’s fragile economic recovery.

Yes indeed. Greek debt does carry a risk to Cypriot banks. You, however, are trying to make the case that Greek debt will put Cyprus into a full-blown financial crisis. Any investment the banks make in commodities, equities, derivatives, FX, etc is "a risk" to those banks. You cannot reasonably make the case, however, that every risk will result in a crisis. See what I mean?

But the knock-on effect of any Greek debt restructuring on Cypriot banks could curb lending and stymie output, already weakened by a collapse in Cyprus's real estate market and slower tourism growth.
And its borrowing costs have been rising. Once a rare borrower on international markets, the euro zone's third smallest economy has tapped them three times in the past two years.

Let's keep this at a 10,000 foot view, lets we lose the forest for the trees. Nobody is saying that banks in Cyprus are immune to risks or are super-human or anything. Nor is anyone saying that a Greek restructuring won't hurt Cyprus. It will. But it isn't likely to result in your full blown financial crisis either.

[repulsewarrior]

...thanks vp, for starting this thread.

...thanks dinos, your observations were most useful; because i feel better about the security of Cyprus.

[DT.]

"Do you know how much your banks have invested in Greek government bonds that are now worthless?"

VP, German and French banks, as well as the European central bank are heavily invested in Greek bonds, today a Greek economic journalist said that over half of Greek bonds are in those hands. Cyprus' holdings are minute by comparison. You think that those major bond holders would ever let their debtor go under?

Secondly you assume that Greek bonds are worthless because now there is a wide spread. There is no certainty this will remain the same. The moment there is any hint of improvement those that invested in bankruptcy will be biting their what nots.

You are tiny in comparison to the countries you quote, your investments are worthless and you have a few banks that are threatened by no return on their investments if there was a run on those banks they would go down like a lead balloon.

Hey dum dum.

Ak bank posted 1.35billion euros revenue in 2010 and bank of Cyprus posted 1.45 billion.

Bank of Cyprus alone holds 33billion in deposits and posted a Profit of 348 million for it's shareholders.

Marfin popular bank is not far behind.

If we compare Turkish banks with Cypriot banks you wouldn't be calling the Cypriot financial institutions insignificant. You'd be wondering what the hell have the Turkish banks been doing. It's not their fault though. Due to decades of high interest rates turkey has never felt the need to invest in other financial instruments that banks pull in large amounts of revenue from.

For example there is no pension scheme in Turkey, there are no private pension schemes being made available to the public because everyone would simply deposit their cash and hopefully earn a couple of bps above whatever the inflation rate was.

[cymart]

The Presidents obsession with Russia reflects his sad state of delusionment about the reality of todays world!The guy still seems to believe that the Soviet Union was an ideal place and that most Russians want to see it resurrected-this was evident from his behaviour during the visit to Moscow when he kept reminiscing about his student days there and spent two hours lunching with Zhuganov,the hated Communist party leader which not surprisingly resulted in Putin snubbing him,no doubt because he also had no time or respect for the leader of a tin-pot little country like Cyprus which he knows the official elite mafia that runs Russia nowadays just use to launder money!No wonder Medvedev only spent a few hours here during his 'official visit' last autumn and you could see the smirk on his face when he had to listen to Christophias pathetic brown-nosing!!
When Christophias came to power I hoped that he was at least sincere about finding a solution a.s.a.p. but I am seriously beginning to wonder if he has not caught the 'leadership chair glue syndrome' which most presidents seem to and are only interested in keeping it for as long as possible??