Cyprus-Forum.com

[Paphitis]

100k is the 'small change' threshold,

seriously, no sweat if its less than 100k.

Is it? 100,000 is small change for you.

Well, you must have more money than sense.

I am not a risk (it is rewarding) averse person. Among my hobbies, trading in futures and shares is one of them, but having large sums frozen in a Cypriot Bank is something I would like to avoid. You might have enjoyed it when it hapenned to you and don't particularly care, but even rich politicians transferred vast amounts out of Cypriot Banks conveniently only days before the Calitak Restrictions. They were obviously sweating quite a lot!

Usually, when looking at a Bank I am looking for zero risk.

[Tim Drayton]

[...]

Look, if you want to keep large amounts in Cyprus, [...]

Mate, I think the asker is inquiring about opening a current account to process a few bills through, rather than depositing their life savings here. For the record, I have had a current account here with the Bank of Cyprus since I came here in 2004 and just keep a big enough balance to cover a couple of months expenses plus a bit more in case of an emergency. I lost nothing during the haircut because I just had a small balance, I just suffered a bit of inconvenience and nervousness when the banks stayed shut for a week. After that, since money comes into my account from abroad, most of my balance counted as "new money" so I was not even affected by the withdrawal limit. For me, it has more or less been business as usual. I really do not think there is much risk to operating a current account in that way through a Cyprus. Anyway, the crisis has happened now and lightening does not strike twice in the same place.

It is true that the Bank of Cyprus has a heck of a lot of non-performing loans in its portfolio. Don't forget that the Troika is demanding new legislation to make foreclosures easier and it is said that the banks will be able to tackle these loans a lot more easily once they can foreclose on security, especially as most of the big debtors are large (ex-)developers. The fact that somebody like Wilbur Ross is investing 400 million euro means that he thinks/knows that the foreclosure legislation is going to go through and this will help the banks become solvent again.

I have found the Bank of Cyprus to be an efficient and friendly bank and if somebody is thinking of opening an current account there or with another of the Cyprus banks mainly to process bills and payments, I would say go for it, and would accuse anybody who says otherwise of scaremongering.

[Paphitis]

[...]

Look, if you want to keep large amounts in Cyprus, [...]

Mate, I think the asker is inquiring about opening a current account to process a few bills through, rather than depositing their life savings here. For the record, I have had a current account here with the Bank of Cyprus since I came here in 2004 and just keep a big enough balance to cover a couple of months expenses plus a bit more in case of an emergency. I lost nothing during the haircut because I just had a small balance, I just suffered a bit of inconvenience and nervousness when the banks stayed shut for a week. After that, since money comes into my account from abroad, most of my balance counted as "new money" so I was not even affected by the withdrawal limit. For me, it has more or less been business as usual. I really do not think there is much risk to operating a current account in that way through a Cyprus. Anyway, the crisis has happened now and lightening does not strike twice in the same place.

It is true that the Bank of Cyprus has a heck of a lot of non-performing loans in its portfolio. Don't forget that the Troika is demanding new legislation to make foreclosures easier and it is said that the banks will be able to tackle these loans a lot more easily once they can foreclose on security, especially as most of the big debtors are large (ex-)developers. The fact that somebody like Wilbur Ross is investing 400 million euro means that he thinks/knows that the foreclosure legislation is going to go through and this will help the banks become solvent again.

I have found the Bank of Cyprus to be an efficient and friendly bank and if somebody is thinking of opening an current account there or with another of the Cyprus banks mainly to process bills and payments, I would say go for it, and would accuse anybody who says otherwise of scaremongering.

Yes Tim, as I said, depositing small amounts into Cyprit Banks is fine. Depositing life savings is something to reconsider.

The BoC might be a solid opportunity for someone to buy the crippled Bank out for cheap. Obviously, they are seeing it as an opportunity and maybe they can afford the possible losses in the short term.

It's about time the Government clamped down on bad debts. Foreclosures against securities must be relatively easy if the borrower defaults for 3 consecutive months. Very recently, someone was bragging that in Cyprus you could borrow money and not pay for months and the Bank is powerless. Well, this is what has bought the Banking sector to its knees but at the same time the Banks should only lend to qualified borrowers who can pay the loan off and who can adequately secure their borrowings.

Until that is sorted out, then I lack confidence.

[Maximus]

100k is the 'small change' threshold,

seriously, no sweat if its less than 100k.

Is it? 100,000 is small change for you.

Well, you must have more money than sense.

I am not a rush averse person, among my hobbies, trading in futures is one of them, but having large sums frozen in a Cypriot Bank is something I would like to avoid. You might have enjoyed it when it hapenned to you and don't particularly care, but even rich politicians transferred vast amounts out of Cypriot Banks conveniently only days before the Calitak Restrictions. They were obviously sweating quite a lot!

Yeah, because those politicians had more than 100k in those accounts.

I am not debating whether 100k is small change or not because it is relative. To the vast majority it is not small change. I am just stating that that is the threshold and anything below this is guaranteed.

My money was only frozen for a short period of time and that was from transferring it out of Cyprus. No inconvenience to me what so ever. This capital control was only implemented because the panicked money, the herd, would sweat it and run the bank, making things worse.

[Tim Drayton]

From the Bank of Cyprus website:

“How can I open a current account?
Call in at any of our branches. Make sure you have your ID card or driving license with you and some proof of your permanent place of residence (e.g. an electricity bill).
If you want to apply for a debit card, remember to fill out the necessary form.
If you want an overdraft facility along with your account, remember to bring your pay slip for the previous month. You can only apply for an overdraft if you are a permanent resident of Cyprus and are in full-time work.”

http://www.bankofcyprus.com.cy/en-GB/Cu ... s_Answers/

[Paphitis]

100k is the 'small change' threshold,

seriously, no sweat if its less than 100k.

Is it? 100,000 is small change for you.

Well, you must have more money than sense.

I am not a rush averse person, among my hobbies, trading in futures is one of them, but having large sums frozen in a Cypriot Bank is something I would like to avoid. You might have enjoyed it when it hapenned to you and don't particularly care, but even rich politicians transferred vast amounts out of Cypriot Banks conveniently only days before the Calitak Restrictions. They were obviously sweating quite a lot!

Yeah, because those politicians had more than 100k in those accounts.

I am not debating whether 100k is small change or not because it is relative. To the vast majority it is not small change. I am just stating that that is the threshold and anything below this is guaranteed.

My money was only frozen for a short period of time and that was from transferring it out of Cyprus. No inconvenience to me what so ever. This capital control was only implemented because the panicked money, the herd, would sweat it and run the bank, making things worse.

My point is, that these amounts were not guaranteed when the accounts were frozen. In fact, there was conjecture that deposits might vanish because the RoC did not have the capital to recapitalize the banks.

It is only after the bailout when funds were allocated, even for deposits under 100,000, and this bailout was only possible after a number of conditions imposed by the Troika were met and one of those conditions was a depositor levy.

As a result, I am trying to explain to you that the Capital Guarantees are virtually non existent. You are only guaranteed if the ECB pays the bill and there is no guarantee that it will.

[Maximus]

100k is the 'small change' threshold,

seriously, no sweat if its less than 100k.

Is it? 100,000 is small change for you.

Well, you must have more money than sense.

I am not a rush averse person, among my hobbies, trading in futures is one of them, but having large sums frozen in a Cypriot Bank is something I would like to avoid. You might have enjoyed it when it hapenned to you and don't particularly care, but even rich politicians transferred vast amounts out of Cypriot Banks conveniently only days before the Calitak Restrictions. They were obviously sweating quite a lot!

Yeah, because those politicians had more than 100k in those accounts.

I am not debating whether 100k is small change or not because it is relative. To the vast majority it is not small change. I am just stating that that is the threshold and anything below this is guaranteed.

My money was only frozen for a short period of time and that was from transferring it out of Cyprus. No inconvenience to me what so ever. This capital control was only implemented because the panicked money, the herd, would sweat it and run the bank, making things worse.

My point is, that these amounts were not guaranteed when the accounts were frozen. In fact, there was conjecture that deposits might vanish because the RoC did not have the capital to recapitalize the banks.

It is only after the bailout when funds were allocated, even for deposits under 100,000, and this bailout was only possible after a number of conditions imposed by the Troika were met and one of those conditions was a depositor levy.

As a result, I am trying to explain to you that the Capital Guarantees are virtually non existent. You are only guaranteed if the ECB pays the bill and there is no guarantee that it will.

I would love to see the ECB try to take all of ones money in any European bank. That would f*ck Europe right up.

[Paphitis]

Not necessarily.

It will only f&@k Cyprus right up. There might be some minor contagion but Cyprus is a tiny market in the scheme of things. If they are going to do it, they will do it to Cyprus. They will do it to make an example and send a message to Spain, Italy and Greece. They are less likely to do it to those countries.

In fact, the entire saga was an experiment to see how far they can go and measure the impact in a tiny market with only minor Impact to themselves or other countries. Next time they will experiment even more.

[Maximus]

Not necessarily.

It will only f&@k Cyprus right up. There might be some minor contagion but Cyprus is a tiny market in the scheme of things. If they are going to do it, they will do it to Cyprus. They will do it to make an example and send a message to Spain, Italy and Greece. They are less likely to do it to those countries.

Its not the case Paphitis. If they wouldn't do it to those country's then Cyprus is no example to them. It is simply an example of the ECB taking all of peoples deposits without any gaurantee.

Cyprus would leave the Euro monetary system for sure if that happened and it would cause contagion across the rest of Europe.

[Paphitis]

Not necessarily.

It will only f&@k Cyprus right up. There might be some minor contagion but Cyprus is a tiny market in the scheme of things. If they are going to do it, they will do it to Cyprus. They will do it to make an example and send a message to Spain, Italy and Greece. They are less likely to do it to those countries.

Its not the case Paphitis. If they wouldn't do it to those country's then Cyprus is no example to them.

Cyprus would leave the Euro system for sure if that happened and it would cause contagion across the rest of Europe.

Yeah it is. Those countries would be scared shitless and not just that, but even major economies like the U.S. and China would be watching and reviewing their Banking Sectors against the possibility of Banking Collapses there.

In fact, the levy in Cyprus made international headlines. It was deemed a very dangerous precedence which has repercussions globally, not just in Europe.

It also gives the ECB greater bargaining power in introducing new taxes and draconian austerity in those countries.

For the last 2 years I had to pay Land Tax in Cyprus. Never had to do that before. It's something that exists in Australia and most European Countries. The amount was relatively small but these taxes are necessary for the Government to balance its budget and to also be able to guarantee depositors. That is the ECBs end game.