That sounds like a recipe that is likely to lead to civil disobedience, i.e. rioting, looting and a general breakdown in law and order.
No doubt the politicians will say they didn't see it coming - the law of unintended consequences!!
So people are going to riot because of a 6.5% cut? It took a 75% cut in Argentina before it made a real difference. These accounts pay 5.5-11% interest.
Cyprus bank - Deposits and savings. The best interest rate - 12.5 %
And basically depend on the Germans offering protection for their very existence.
When the banks re open and restrictions lifted, do you honestly think
people will leave their money in the bank that someone has just
taken 10% of ?
I doubt it. I wouldn't and would never trust the banking system again
or the EU for deciding it can go ahead.
Let them put their money where its safe i.e German banks, I'm sure that is the intent. Most of the big depositors are Russians - they can riot in Russia (who is contributing 2.5billion to the bailout, BTW).
I've little sympathy for people who gamble on dodgy banking systems to make a higher return, if they get stung - tough. Everybody was forewarned by the Icelandic situation.