Cyprus-Forum.com

[appel]

How will businesses pay salary?

Your banks are effectively toast. Being able to withdraw €300 from your deposits says nothing. Your banks have defaulted on their promises, they are in a state of default, they are bankrupt. In reality they should be put into bankruptcy, closed.

Banks can't just tell depositors their money is gone and keep operating like normal.

Someone who has lost money will sue, that's for sure. Your judiciary system will be flooded with lawsuits.


You've yet to see the fallout from this. Banks who negate on their promises can't just operate like nothing happened, nobody will do business with them, and banks rely on others doing business with them, they rely on others trusting them.

Small depositors are not the problem, we're taking about large scale financial transactions here, for industry, for businesses, so your economy can operate. E.g. a industry needs to import raw materials from overseas, the seller wants bank guarantees of payment, but not from a Cypriot bank, and the Cypriot industry is unable to provide other type of guarantees, hence has to pay in cash. The cost of insuring Cypriot debt will increase.

In all likelihood, what we will see unfolding for the next weeks is a domino effect on the Cypriot economy. Businesses will go bankrupt because of the banks, and the whole "casino" economy will unravel.


But other than that, you can withdraw €300 (cypriot) euros, which seems to be another currency than the euro.

[Paphitis]

Well everything seems quite orderly. Well done Cypriots!!

The situation is bad I agree but it is hardly catastrophic. The Banks have also been guaranteed a bail out which means they should not go bankrupt. They will downsize because many Billions will leave and not be at their disposal.

Deposits under 100,000 are capital guaranteed do that should keep the vast majority of Cypriots happy.

Appel you sound disappointed and bitter that the situation is fairly under control! Why?

[Get Real!]

How will businesses pay salary?

blah blah blah blah....

We’ve got plenty of problems but let’s now talk about yours...

Why are you posting here?

Out of concern?

[CBBB]

How will businesses pay salary?

blah blah blah blah....

We’ve got plenty of problems but let’s now talk about yours...

Why are you posting here?

Out of concern?

He/she/it can't even spell apple properly!

[appel]

A sound of reason is desperately needed here. Given that I've gone through everything Cypriots are going through, and everything seems to be similar, I can tell you what to expect.

Capital controls are not going to last a month. They are going to last as long as your banks are zombies. And as far as I know there are no plans to change that.

The next phase, I tell you, are business and economic crises. The banks may remain open, but at very limited capacity. You'll see massive asset price deflation, and lots of people will be "under water", meaning they owe more than they own. The banks that own mortgages will start to see lots of defaults, and collateral will be insufficient.

As I said, there will be a domino effect, things will unravel. There will be a couple of years, maybe 3, until stability is achieved, but until then expect high unemployment, deflation, bankruptcies, closures, and whole lot of social suffering. I do not know how bad it will be, I guess it depends on how the government handles it, and how your society works.

Catastrophe is a very subjective term, which I didn't use. I am not bitter or disappointed, I have no conflict of interest, I hope Cyprus gets out of the troubles safely but effectively.

[Tim Drayton]

"expect high unemployment, deflation, bankruptcies, closures, and whole lot of social suffering"
Agreed, but your prediction was that none of our banks would ever open again, and they just have.

[bsharpish]

How many times has Cyprus been knocked down and through the tenacity of its people, the blessings of its climate, the pragmatic "lets get on with it" nature of real Cypriots and the abundance of its fields risen and fought back.

Yes the politics can be complicated, yes - from time to time the democratic choice of Cypriots will turn out to be a complete fuckwit, yes the island has its issues, however;

No one will starve, no one will freeze to death for lack of heating,the sun will still shine, the sea will remain blue, the flowers of the akamas will still bloom, old men will still drink coffee and debate everything outside taverna's --- life will go on.

Yes there may be a few tough years ahead, but Cyprus will bounce back........ Of this I am 100% convinced

[B25]

Who was trying to burn the Turkish flag while waiting in the queue?

http://www.bbc.co.uk/news/business-21950913

Theres a man here who threatens to close the banking system again he says he has the power.

Bet that little clip gave you a reason to jerk off. Did you stand in front of it and whack it! AH.

[davidogden]

#How will businesses pay salary?

Your banks are effectively toast. Being able to withdraw €300 from your deposits says nothing. Your banks have defaulted on their promises, they are in a state of default, they are bankrupt. In reality they should be put into bankruptcy, closed.

Banks can't just tell depositors their money is gone and keep operating like normal.

Someone who has lost money will sue, that's for sure. Your judiciary system will be flooded with lawsuits."

I wish people would get their facts right

Yes some people have lost money from 2 of the 25 plus banks in Cyprus
Yes banking will take some time to get back to normal
Yes people will think twice about holding money in banks over and above the bank Guarantees
Yes a lot of banking and finance jobs will be lost
Yes it is difficult to get money out of the country

But the country is resilient and day to day life goes on
tourist will still come
People will still retire and and move to Cyprus to enjoy the sunshine

Yes maybe some Russians will leave is that a bad thing

The world did not come to and end and will not for the foreseeable future

[Tim Drayton]

Does anybody know if the limit on withdrawals applies to deposits made post bank re-opening day of March 28th? If so,it shouldn't. This will discourage people from making fresh deposits and thus delay the return to normality.