Cyprus-Forum.com

[supporttheunderdog]

I have just checked out a link to the Financial mirror: they say

SCORCHED EARTH: The Cyprus bailout, cut on deposits,not current accounts
http://www.financialmirror.com/news-details.php?nid=29134

[Maximus]

I have just checked out a link to the Financial mirror: they say

SCORCHED EARTH: The Cyprus bailout, cut on deposits,not current accounts
http://www.financialmirror.com/news-details.php?nid=29134

I am walking on scorched earth with asbestos shoes then but I have already write that amount off from my account. lets see on Tuesday.

[Viewpoint]

EU Principles and solutions:wink:

[Demonax]

Well prob the worst of any decisions ... shatters whatever confidence was left in the CY Banks, destroys consumer confidence and takes mega billions out of the economy. ... and what will depositors in Italy, Spain and Portugal be thinking...???

bail-in on deposits for equity vs prolonged austerity and inflation.

There is a kind of brutal logic to it. In Cyprus's case the tax brings in 5.8 bn which presumably would have to come from elsewhere: income or sales tax. As it is, a large chunk comes from Russians and British deposit holders.

My guess is that the unfair bit of this: the tax on savings less than 100k, was done so that it doesn't look like the Russians with more than 100k are seen as taking the only hit. So everyone pays their share.

But how much does the average Cypriot have in bank deposits? 5k? 10k? That means they pay 325 -650 with some compensation in bank shares.

[B0B]

as always - cypriots dont protest or if they do - they do it like pu...ies
this is how you protest with a bulldozer

[Maximus]

Well prob the worst of any decisions ... shatters whatever confidence was left in the CY Banks, destroys consumer confidence and takes mega billions out of the economy. ... and what will depositors in Italy, Spain and Portugal be thinking...???

bail-in on deposits for equity vs prolonged austerity and inflation.

There is a kind of brutal logic to it. In Cyprus's case the tax brings in 5.8 bn which presumably would have to come from elsewhere: income or sales tax. As it is, a large chunk comes from Russians and British deposit holders.

My guess is that the unfair bit of this: the tax on savings less than 100k, was done so that it doesn't look like the Russians with more than 100k are seen as taking the only hit. So everyone pays their share.

But how much does the average Cypriot have in bank deposits? 5k? 10k? That means they pay 325 -650 with some compensation in bank shares.

according to Reuters, it was only Cypriots queing up at the atms to try and withdraw their money. A pointless exercise in my opinion but a predictable one, otherwise I noticed people going about their business as normal.

did these large depositors lose or save money over the years in Cyprus?

[Oceanside50]

Well prob the worst of any decisions ... shatters whatever confidence was left in the CY Banks, destroys consumer confidence and takes mega billions out of the economy. ... and what will depositors in Italy, Spain and Portugal be thinking...???

For those thinking of trying to get hold of their deposits, money thrown in to the bottomless pit of the Greek Banks, here's a chap in Kyperounta threatening to make a withdrawal with a digger...

http://www.bbc.co.uk/news/world-europe-21813754

co-op banks are probably the strongest and safest right now!!! he should go to Laiki instead

[CBBB]

Well prob the worst of any decisions ... shatters whatever confidence was left in the CY Banks, destroys consumer confidence and takes mega billions out of the economy. ... and what will depositors in Italy, Spain and Portugal be thinking...???

For those thinking of trying to get hold of their deposits, money thrown in to the bottomless pit of the Greek Banks, here's a chap in Kyperounta threatening to make a withdrawal with a digger...

http://www.bbc.co.uk/news/world-europe-21813754

co-op banks are probably the strongest and safest right now!!! he should go to Laiki instead

What makes you think the Co-ops are safe? They are run by AKELites with their typical Soviet incompetence!

[Demonax]

according to Reuters, it was only Cypriots queing up at the atms to try and withdraw their money. A pointless exercise in my opinion but a predictable one, otherwise I noticed people going about their business as normal.

did these large depositors lose or save money over the years in Cyprus?

I've no problem with a levy on Cyprus' bank deposits above 100k. Strikes me as a sensible move. But taxing savings below that level leaves a nasty taste in the mouth. I don't think they should have levied anyone with less than 50k in savings. As I said, the only reason I can think is that they didn't want to upset Russian and other wealthy depositors by making it look like they are being singled out.

[kurupetos]

according to Reuters, it was only Cypriots queing up at the atms to try and withdraw their money. A pointless exercise in my opinion but a predictable one, otherwise I noticed people going about their business as normal.

did these large depositors lose or save money over the years in Cyprus?

I've no problem with a levy on Cyprus' bank deposits above 100k. Strikes me as a sensible move. But taxing savings below that level leaves a nasty taste in the mouth. I don't think they should have levied anyone with less than 50k in savings. As I said, the only reason I can think is that they didn't want to upset Russian and other wealthy depositors by making it look like they are being singled out.

IMO that's not the main problem. Nobody will die with a 6.75% haircut. The problem is whether this will be repeated in the future or not, and maybe with a higher percentage.

Why not pay more, e.g. 20%, and come out clean with no loan from the troika?

And why didn't the president accept the original proposal for 12.5% haircut for 100k+ deposits? Is it because he and his mates would have to pay more?