Cyprus-Forum.com

[boulio]

The euro group should call a emergency secession in the next few hours and ask Germany to politely leave the eurozone.the euro will devalue the Ecb will be allowed to print it's way out of the crisis and the Germans will have their super valued new mark that will destroy her exports

[kurupetos]

The euro group should call a emergency secession in the next few hours and ask Germany to politely leave the eurozone.the euro will devalue the Ecb will be allowed to print it's way out of the crisis and the Germans will have their super valued new mark that will destroy her exports

The Eurogroup is Germany and her satellites (Benelux, Austria, Finland).

[sven]

Hi, It seems to me that the European Central Bank(ECB), is also the
Governor to The Central bank of Cyprus (CBoC), and considering the ECB
has demanded of Cyprus theft of the peoples savings, it seems to be a
conflict of interest, because upto 100,000.00 euros per depositor per
bank deposited in every bank licensed by the CBoC (the governor being
the ECB) is protected by the DEPOSIT PROTECTION SCHEME, that the Central
Bank of Cyprus and in turn the ECB would liable for. ie The reason they
are NOT letting the banks fail.
Links with my interpretation below.

Deposit protection scheme

Deposit Protection Scheme (DPS) was established in September 2000, and operates since then, in accordance with Article 34 of the Banking Law of 1997 as subsequently amended, and the Establishment and Operation of the Deposit Protection Scheme Regulations of 2000 to 2009. In accordance with these Regulations, a Deposit Protection Fund has also been established which operates as a separate legal entity administered by a Management Committee.

The purpose of the DPS is to provide protection to deposits and compensate depositors in the event that a member bank is unable to repay its deposits. The DPS covers deposits denominated in all currencies.



Participation in the DPS is compulsory for all banks authorised by the Central Bank of Cyprus, i.e. banks incorporated in the Republic of Cyprus, including their branches in other countries, and the Cyprus branches of foreign banks, incorporated outside the Republic of Cyprus or the Member-States of the European Union The DPS does not cover deposits of branches of banks established in European Union Member States. These deposits are covered by the corresponding deposit protection scheme established in the country of incorporation.



The DPS is activated in the event a decision is reached that a member bank is unable to repay its deposits, or as a result of a Court’s order for the winding-up of a member bank. Where a bank is unable to pay its deposits, the relevant decision is adopted by the Central Bank of Cyprus or, where a member bank is incorporated in a country outside the Republic of Cyprus, by the competent supervisory authority of the country of incorporation.



The maximum level of compensation, per depositor, per bank, is €100.000. This limit applies to the aggregate deposits held with a particular bank. When calculating the amount of compensation payable to a depositor, any loans or other credit facilities granted by the depositor’s bank are set-off against the deposits. Any counterclaims that the bank concerned may have against the depositor in respect of which a right of set-off exists, can also be set-off.



Excluded from coverage are certain categories of deposits such as bank deposits (inter-bank), deposits by provident and pension funds, insurance companies, government departments, semi-government organisations and local authorities, and deposits by collective investment schemes. For these categories of deposits no compensation can be paid. The Management Committee may exempt any other categories of deposits if, in its opinion, particular circumstances render such decision necessary.



On the activation of the DPS, an announcement is made in the Official Gazette of the Republic of Cyprus and in the local press stating that the member bank is unable to repay its deposits and specifying the manner in which claims could be submitted and the necessary documentary evidence that accompany each claim.



Excluded from the DPS are the Cooperative Central Bank Ltd and the Cooperative Credit Institutions. These institutions are covered by a separate scheme established under the Cooperative Societies (Establishment and Operation of the Deposit Protection Scheme) Rules of 2000 to 2009 which were issued on the basis of the corresponding regulations that govern the DPS. As with DPS, the maximum compensation is €100.000 per depositor, per institution. For more information interested parties may visit: http://www.cssda.gov.cy/cssda/cssda.nsf/DMLprotection_en/DMLprotection_en?OpenDocument

So have I got this right, I could have 100,000.00 euros in three seperate banks totalling 300,000.00 euros, and if they all fail due to being unable to refund deposits I would get my money back, under the terms of the Deposit Protection Scheme

If I have, this is not about protecting the depositor, is it.

https://en.wikipedia.org/wiki/Central_Bank_of_Cyprus

The Governor of the Central Bank of Cyprus is the highest official in the Central Bank of Cyprus. The position was established in 1963 when the Central Bank of Cyprus was established.

The Governor has the responsibility of chairing the meetings of the Central Bank's Governing Council and Board of Directors. He or she had the responsibility for setting the Central Bank's policy in relation to the Cypriot economy, but this responsibility passed to the President of the European Central Bank on 1 January 2008, which is also the date that Cyprus changed over to the Euro from the Cypriot pound. The Governor is a member of the Governing Board of the European Central Bank.

Interesting eh, The Responsibility for the Central Bank of Cyprus policy is the European Central Bank (ECB),

[GreekIslandGirl]

Another one who cannot wait to get her hands on Cyprus' assets ...

IMF managing director Christine Lagarde, who attended the meeting, said she backed the deal and would ask her board in Washington to contribute to the bailout. "We believe the proposal is sustainable for the Cyprus economy," she said, "The IMF is considering proposing a contribution to the financing of the package. The exact amount is not yet specified."

Guardian

[cyprusgrump]

[observer]

Hi, It seems to me that the European Central Bank(ECB), is also the
Governor to The Central bank of Cyprus (CBoC), and considering the ECB
has demanded of Cyprus theft of the peoples savings, it seems to be a
conflict of interest, because upto 100,000.00 euros per depositor per
bank deposited in every bank licensed by the CBoC (the governor being
the ECB) is protected by the DEPOSIT PROTECTION SCHEME, that the Central
Bank of Cyprus and in turn the ECB would liable for. ie The reason they
are NOT letting the banks fail.
Links with my interpretation below.

Deposit Protection Scheme protects investors in the event of bank failure. Proposed action by Cypriot government is regarded as a tax, and nothing protects you from the taxman.

[cyprusgrump]

None too sure the sane and rational analysis works at the moment. The elections were last month and the guy who won – Nicos – made explicit promises that he’d avoid exactly this sort of tax.

Unfortunately the previous administration pissed around trying to get deals with Russia, and Qatar. They, very sensibly, declined so, faced with no other choice but the ECB, Cyprus went into negotiations in a very weak position indeed.

Nicos addressed the nation at 21.00 hrs local time (19.00 gmt) tonight, which I didn’t watch, but the essential message has not changed. “It’s not me, it’s those dreadful people who went before me and the EU who have forced me to do this”.

The personal stories I’ve heard and the rage that’s palpable is sort of scary. It’s not just a bunch of Russians trying to stiff their tax man. Seems they may have got their figures wrong on lots of things because that’s down from an initial – estimated – 60% of all savings to about 35%. Nope, they’re hitting trust funds, charities, churches (Very Silly), genuine regional offices of multi nationals as well as UN staff posted to the island. Then there are the overseas students and the list goes on and on.

You’ll know by now that UK service personnel and Gov’t flunkies will all be reimbursed by the UK taxpayer – Osborne looks after his own.

As things stand parliament has refused point blank to sign off on this deal. They meet tomorrow afternoon (it’s Green Monday and a national holiday). Betting is they’ll probably go for a reasonable threshold of about €5,000 and graduate it more, so small depositors don’t get hit as hard.

On the other hand there’s a view that they’re setting themselves up for serious long term problems if they allow this tax to go through. Bahrain, Dubai and Singapore will be the beneficiaries and we stand to lose some major names, plus countless jobs. They may simply tell him to go back and negotiate a better deal, or start the process of default and withdrawal from the EU.

Unfortunately it looks to be the first option.

Bank shares. I agree with the concept, in fact I have shares in Lloyds Bank Group. We know the cut off to a profitable govt sale is 61 p and I bought at 28 p. But banks in Cyprus have huge outstanding loans to property developers that will never be repaid in full. Bank shares may well yield a handsome return, but that’s only if you think you’ll live for 5 or more years. Many don’t have that luxury. At the moment they’re a lousy token offering.

There’s another aspect. Building Societies are as the UK, mutual, and they’re in very good financial nick. Depositors with those have no desire whatsoever to own bank shares and many won’t have a clue about what to do with share certificates.

In the meantime all this flaffing around means all the ATM’s are dry and the banks will not open until Wednesday at the earliest (rumour has it’ll be Thursday), so you try explaining how you’re going to pay for that private operation scheduled for 09.00 on Tuesday?

It was a very stupid idea, it screws Cyprus big time, yet this island sits atop one of the largest gas and oil fields in the Eastern Med. Within two years they’ll be shipping oil and within four they’ll be piping gas – to the EU.

My own personal opinion is Cyprus should cut its losses and exit the EU as soon as possible. The shortfall is a trifling €7 bn. When the chips are down, the EU proved to be a fair weather friend. I also believe they’ve done more to harm to themselves than they bargained for. If a precedent is established here, I suspect the concept will have considerable appeal elsewhere, like Spain or France.

My betting is the Euro will take a hammering when markets open the morrow.

The bigger picture is that in their never ending wish to keep interest rates down, they’ve ruined their own tax base. Dead easy to collect, but at 0.5% at best, not a fraction of what they’ve grown accustomed to. Something Osborne knows about, but can’t fix.

Clicky...

[danny1234]

It really doesn't matter what happens now, the damage is done and the end of the EU is speeding forward, within a year it will all be over and countries will have their orignal currencies once again. The EU has been good for Germany, it was their way of controlling Europe without firing a shot or heilling the crap everywhere.

[danny1234]

Another one who cannot wait to get her hands on Cyprus' assets ...

IMF managing director Christine Lagarde, who attended the meeting, said she backed the deal and would ask her board in Washington to contribute to the bailout. "We believe the proposal is sustainable for the Cyprus economy," she said, "The IMF is considering proposing a contribution to the financing of the package. The exact amount is not yet specified."

Guardian

Cyprus doesn't have any assests otherwise it wouldn't need bailing out, jeez

[CBBB]

There’s another aspect. Building Societies are as the UK, mutual, and they’re in very good financial nick. Depositors with those have no desire whatsoever to own bank shares and many won’t have a clue about what to do with share certificates.

Clicky...

I presume he means the Co-ops when he says Building Societies, in which case he is wrong about them being in good financial nick, they need a few billion as well!