Cyprus Levy on Bank Accounts
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Not one vote in the Cypriot parliament supporting the vote with 36 voting against and 19 abstaining.
BBC News - Cyprus MPs reject EU-IMF bailout tax on bank depositors
I wonder where they go from here.
BBC News - Cyprus MPs reject EU-IMF bailout tax on bank depositors
I wonder where they go from here.
Last edited by NutLoose; 19th Mar 2013 at 22:08.
I was on holiday in Cyprus in (IIRC) the autumn of 2007. Cyprus was gearing up to join the Euro (1 Jan 08?). Speaking to the Cypriots they seemed pretty evenly split for joining the Euro or keeping the C£. I suggested they should keep the C£; I still have a few in my currency jar, maybe I will get to use them again. One can always hope! 
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From the Beeb..
Appears the EU threat was just bluster
One does wonder if this could be the beginning of the end of the Euro, at least one good thing would have come out of the Euro, and that is a levelling of the playing field in European currencies which means we won't go back to the old days of needing to be a Lira Millionaire to buy a pint in Italy.
Appears the EU threat was just bluster
EU finance ministers had previously warned that Cyprus' two biggest banks would collapse if the deal failed to go through in some form.
But after the vote the European Central Bank (ECB) moved quickly to announce it would continue to provide support for struggling Cypriot banks "as needed within the existing rules".
German Finance Minister Wolfgang Schauble said he "regretted" the vote and that Cypriots must understand ECB aid was contingent on a reform programme.
But after the vote the European Central Bank (ECB) moved quickly to announce it would continue to provide support for struggling Cypriot banks "as needed within the existing rules".
German Finance Minister Wolfgang Schauble said he "regretted" the vote and that Cypriots must understand ECB aid was contingent on a reform programme.
Meanwhile, the UK ministry of defence said a plane carrying 1m euros had arrived in Cyprus as a contingency measure to provide military personnel and their families with emergency loans.
The money is to be used for British personnel and their families if cash machines and debit cards stop working.
The money is to be used for British personnel and their families if cash machines and debit cards stop working.
Last edited by NutLoose; 20th Mar 2013 at 01:08.
I suggested they should keep the C£; I still have a few in my currency jar, maybe I will get to use them again. One can always hope!
After returning to the VC10 having had time out at the UAS, I found some Escudos notes in the pot, so took them to Lajes on one trip - only to find that they were no longer accepted. So Marcelino's restaurant got them as their tip...as on another occasion did Chris Kebab, to whom I gave my last 500 Mil Cyp note!
Maybe I'll get the chance to use the Drachmas again before long? And the Pesetas and Lire? But not the Francs and Reichs.....Deutschemarks, I guess.
Running up a Turkish hotel bar bill until it reached 1000000 blats was pretty easy though!
When Incirlik's runway was being resurfaced, the RAF VC10 det moved to Antalya. Having declined the offer of some tip out in the bondhu (contaminated water), it was agreed that we would instead stay at the Sheraton - far more befitting for Ascoteers! So we had several glorious weeks alternately flying one day and lounging around the pool on the next. A side benefit being that if you let your bill mount up after the exchange rate changed (the Turkish Lire was invariably weakening against even the £), then waited until just before the next update, you could easily make the cost of a decent meal or two. But the Spams stopped all that, by insisting that hotel bills were to be settled weekly....
Last edited by BEagle; 20th Mar 2013 at 09:02.
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Why on earth did they airlift the money ... a million euros could all fit into a couple of (albeit heavy) suitcases on a passenger flight. Presumably the flight wasn't done especially for this purpose?
Ll
Ll
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So.......imagine the ramifications if Cyprus goes bust, is kicked out of the Euro and is bailed out by Russia. In exchange it leaves the EU and instead joins the CIS so coming under Russian political control.
That would give Russia control of the airfields and ports, of the gas fields around Cyprus and would enable basing in the eastern Med of Russian warships and aircraft, putting both the canal and Dardanelles at risk.
The Sovereign bases could also come under pressure.
It would be quite a shrewd political-military move by Russia, and I can't help wondering if some allies within the Cypriot and EU heirerarchy have somehow helped to contrive the situation.
That would give Russia control of the airfields and ports, of the gas fields around Cyprus and would enable basing in the eastern Med of Russian warships and aircraft, putting both the canal and Dardanelles at risk.
The Sovereign bases could also come under pressure.
It would be quite a shrewd political-military move by Russia, and I can't help wondering if some allies within the Cypriot and EU heirerarchy have somehow helped to contrive the situation.
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The Russians are apparently afraid that Cypriot banks are in such bad shape, that bailing them out by taking them over is too risky. Instead, they are taking a wait and see attitude.
With the European Central Bank ready to cut off emergency funding of Cyprus banks on Monday unless the government can come up with a bailout plan, Cypriot officials are desperately trying to come up with a "Plan B" that the EU will accept.
If Cyprus is forced back to "Plan A" and the depositor haircuts, another vote in parliament will be necessary. This time, with the ECB ultimatum staring them in the face, they will be forced to choose between political suicide and an economic meltdown.
Unless some miracle occurs and Cyprus figures out a way to satisfy the EU without taking money from depositors, it is likely that the haircuts will pass sometime before Monday.
The EU and IMF are determined to see their plan to confiscate private savings realized in preparation for a roll out across the EU. Remember, the EU is already pushing a plan to tax global financial transactions to pay for their unsustainable socialism. This is just the next step. So, along with indirectly taxing savings through the inflationary erosion of value, politicians will be directly taxing savings in a double hit. This is similar to the double taxation of corporate earnings - first at the corporate level, then as capital gains. Since EU and IMF politicians aren't elected directly, no double taxation without representation should become Europe's battle cry!
Look out Spain and Italy: you're next!
Bob C
With the European Central Bank ready to cut off emergency funding of Cyprus banks on Monday unless the government can come up with a bailout plan, Cypriot officials are desperately trying to come up with a "Plan B" that the EU will accept.
If Cyprus is forced back to "Plan A" and the depositor haircuts, another vote in parliament will be necessary. This time, with the ECB ultimatum staring them in the face, they will be forced to choose between political suicide and an economic meltdown.
Unless some miracle occurs and Cyprus figures out a way to satisfy the EU without taking money from depositors, it is likely that the haircuts will pass sometime before Monday.
The EU and IMF are determined to see their plan to confiscate private savings realized in preparation for a roll out across the EU. Remember, the EU is already pushing a plan to tax global financial transactions to pay for their unsustainable socialism. This is just the next step. So, along with indirectly taxing savings through the inflationary erosion of value, politicians will be directly taxing savings in a double hit. This is similar to the double taxation of corporate earnings - first at the corporate level, then as capital gains. Since EU and IMF politicians aren't elected directly, no double taxation without representation should become Europe's battle cry!
Look out Spain and Italy: you're next!
Bob C
Anything over 100k is not protected and normally is lost when a bank crashes. As the EU is financing the under 100k protection (because Cyprus is incapable of fulfilling its duties) it can hardly be called theft or confiscation of private savings. Its an investment loss. Iceland seized 100% of foreign bank accounts and the EU agreed that it was legal in the circumstances.
Why would anyone have over 100k in a bank account, let alone in a know basket case such as Cyprus? The Greeks moved their money abroad years ago.
Have more than 5K and customs will interrogate you. Legally any police or customs officer can confiscate anything over 1K anywhere in the UK if they believe its the proceeds of crime.
Why would anyone have over 100k in a bank account, let alone in a know basket case such as Cyprus? The Greeks moved their money abroad years ago.
If you are arriving in the UK from a country outside the European Union (EU), or you're leaving the UK to travel directly to a country outside the EU, you must declare any cash of 10,000 euros or more (or its equivalent in other currencies) to customs officers.
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Milo Minderbinder,
That is certainly a nightmare analysis. I suspect the Russians are playing some sort of long game. They are more interested than they are letting on.They do, after all, have $30 billion in the banks of Cyprus. Strange timing to the death of Berezovsky? I suspect clever foul play, i.e no evidence.
The proposed haircut is looking more like a scalping. The book of rules and agreements, has been thrown away. Is Cyprus a guinea pig for the rest of the Eurozone ?
Old Mother Merkel, aka the 'Stasi-Frau', has elections coming up in September, this is an important factor.
For those interested, you might like to read this book by Mitch Feierstein. It is very relevant:-
Planet Ponzi (Book) by Mitch Feierstein (2012): Waterstones.com
That is certainly a nightmare analysis. I suspect the Russians are playing some sort of long game. They are more interested than they are letting on.They do, after all, have $30 billion in the banks of Cyprus. Strange timing to the death of Berezovsky? I suspect clever foul play, i.e no evidence.
The proposed haircut is looking more like a scalping. The book of rules and agreements, has been thrown away. Is Cyprus a guinea pig for the rest of the Eurozone ?
Old Mother Merkel, aka the 'Stasi-Frau', has elections coming up in September, this is an important factor.
For those interested, you might like to read this book by Mitch Feierstein. It is very relevant:-
Planet Ponzi (Book) by Mitch Feierstein (2012): Waterstones.com
Have more than 5K and customs will interrogate you. Legally any police or customs officer can confiscate anything over 1K anywhere in the UK if they believe its the proceeds of crime.
As well as 33p Ascension, 4.365 Bahraini dinar, 66.50 Belgian francs, 5p Bermuda, 57p Channel Isles, 21.30 Czech koruna, 40.40 French francs, 1.17 German deutschemarks, 590 Greek drachma, 10.80 Hong Kong dollars, 500 Indian paise, 1700 Italian lire, 10p Malta, 540 Portuguese escudos, 4.45 Saudi riyals, 374 Spanish peseta, 200000 Turkish lira, 2 UAE dirham, £1.49 in obsolete UK coins, plus 5/- and a halfpenny in pre-decimal UK coins.
All of which are probably worth nothing!
But the $Can 4.00 is still legal tender, as is $US 9.92, including a 1962 Franklin half-dollar which has a high silver content and a 1980 Kennedy half-dollar which has no silver content.
The things one does on a cold, damp day.....
Last edited by BEagle; 29th Mar 2013 at 14:50.
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So it's suddenly acceptable for state sponsored theft from someone who has over 100k in the bank is it? Why not 99.9k? What if that money is part of a legitimate business and belongs to customers and not the account holder.
The politics of envy (or socialism by a more accurate name)......
The politics of envy (or socialism by a more accurate name)......
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Indeed this was covered by a news item. A businesswoman has client's money in her account.
Perhaps Cyprus should do the same as Iceland, whose economy has recovered after two years of pain.
BBC News - Could Iceland be a model for debt-ridden Europe?
Iceland Provides Blueprint for How to Deal With the Financial Crisis | FDL News Desk
Perhaps Cyprus should do the same as Iceland, whose economy has recovered after two years of pain.
BBC News - Could Iceland be a model for debt-ridden Europe?
Iceland Provides Blueprint for How to Deal With the Financial Crisis | FDL News Desk
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It's starting, UKIP are now recommending if you have savings in Spain, pull them out.
Ukip urges Brits to withdraw their money from Spanish banks - Telegraph
Cyprus dreams left in tatters - Telegraph
You cannot simply decide to Steal people's money with the backing of the EU without the effects of that decision spreading like wildfire amongst those countries who's banking systems are teetering on the edge. Once you have let that particular genie out of the bottle, you will never put it back in.
Beginning of the end of the Euro?
Ukip urges Brits to withdraw their money from Spanish banks - Telegraph
Cyprus dreams left in tatters - Telegraph
You cannot simply decide to Steal people's money with the backing of the EU without the effects of that decision spreading like wildfire amongst those countries who's banking systems are teetering on the edge. Once you have let that particular genie out of the bottle, you will never put it back in.
Beginning of the end of the Euro?
Last edited by NutLoose; 24th Mar 2013 at 16:10.
Sky news reporting a bomb at a cash machine in Limassol. Things could get quite ugly one thinks, I really hope not, the country has enough trouble already.
Last edited by smujsmith; 24th Mar 2013 at 23:34.
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Exeng,
Perhaps that is the idea in the first place?
This story has more to run. The Russian depositors will not take lightly the 'scapling' they will get from this bailout. I expect a strong reaction at some stage. Work for hackers ?
Robert Peston of the BBC, puts things in perspective:-
The rescue of Cyprus won't feel like one to its people
"Although eurozone governments and the International Monetary Fund have rescued Cyprus, it probably won't feel like much of a rescue.
The second largest bank, Laiki, is being closed. Losses from its closure, which will be substantial - billions of euros - will be absorbed by holders of its bonds and those with deposits over 100,000 euros ($130,000; £85,000).
So at a stroke, one important source of credit to the economy will be eliminated.
There is some relief for those with savings of 100,000 euros or less, because their cash will be transferred to the Bank of Cyprus, the country's biggest bank, and kept intact.
But Bank of Cyprus too is being reconstructed. And the costs of making sure it has enough capital to operate safely in the future will also fall on its deposits greater than 100,000 euros. So these depositors too will incur losses running to billions of euros.
In the many months it will take to rehabilitate Bank of Cyprus, the prospects of it providing adequate credit to households and businesses are slim indeed.
Meanwhile, foreign banks operating in Cyprus will probably head for the hills, knowing that an economy already in recession will probably now contract at a rate of knots - causing penury to many.
So, in summary, getting any kind of conventional loan in Cyprus over the next year may be almost impossible.
In the long term as well, prospects for this economy will be extremely challenging: the country's important offshore banking industry, the business of looking after the tax-escaping cash of Russian businesses and individuals, is in effect being closed down forever. All those losses being heaped on large depositors are reason enough for anyone with a choice about where to place their cash to stay away from Cyprus forever.
So here is the Cyprus "rescue" in a nutshell:
The price for Cyprus of staying in the eurozone will be as great as for the people of any of the currency union's over-indebted nations.
What should give the eurozone's leaders some pause for thought is that at some point the people of countries in financial difficulty may begin to wonder whether they are right to be paying this steep bill to preserve the euro."
Perhaps that is the idea in the first place?
This story has more to run. The Russian depositors will not take lightly the 'scapling' they will get from this bailout. I expect a strong reaction at some stage. Work for hackers ?
Robert Peston of the BBC, puts things in perspective:-
The rescue of Cyprus won't feel like one to its people
"Although eurozone governments and the International Monetary Fund have rescued Cyprus, it probably won't feel like much of a rescue.
The second largest bank, Laiki, is being closed. Losses from its closure, which will be substantial - billions of euros - will be absorbed by holders of its bonds and those with deposits over 100,000 euros ($130,000; £85,000).
So at a stroke, one important source of credit to the economy will be eliminated.
There is some relief for those with savings of 100,000 euros or less, because their cash will be transferred to the Bank of Cyprus, the country's biggest bank, and kept intact.
But Bank of Cyprus too is being reconstructed. And the costs of making sure it has enough capital to operate safely in the future will also fall on its deposits greater than 100,000 euros. So these depositors too will incur losses running to billions of euros.
In the many months it will take to rehabilitate Bank of Cyprus, the prospects of it providing adequate credit to households and businesses are slim indeed.
Meanwhile, foreign banks operating in Cyprus will probably head for the hills, knowing that an economy already in recession will probably now contract at a rate of knots - causing penury to many.
So, in summary, getting any kind of conventional loan in Cyprus over the next year may be almost impossible.
In the long term as well, prospects for this economy will be extremely challenging: the country's important offshore banking industry, the business of looking after the tax-escaping cash of Russian businesses and individuals, is in effect being closed down forever. All those losses being heaped on large depositors are reason enough for anyone with a choice about where to place their cash to stay away from Cyprus forever.
So here is the Cyprus "rescue" in a nutshell:
- An economy that will be starved of credit, and will therefore shrink rapidly and very painfully for citizens
- An economy whose main industry, offshore banking, is being shut.
The price for Cyprus of staying in the eurozone will be as great as for the people of any of the currency union's over-indebted nations.
What should give the eurozone's leaders some pause for thought is that at some point the people of countries in financial difficulty may begin to wonder whether they are right to be paying this steep bill to preserve the euro."
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high spirits
I cannot speak for Cypriot law, but in the UK, when money is put into a bank account, that money is legally OWNED by the bank. Not the account holder.
As we have seen, in the case of the bank going bankrupt, the account holder is most definitely not the 1st in line for any assets.
What if that money is part of a legitimate business and belongs to customers and not the account holder.
As we have seen, in the case of the bank going bankrupt, the account holder is most definitely not the 1st in line for any assets.