Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Cyprus weighs big bank levy; bailout goes down to wire
Reuters ^ | 3/23/2013 | Michele Kambas and Costas Pitas

Posted on 03/23/2013 8:13:43 AM PDT by markomalley

Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and avert financial collapse.

Finance Minister Michael Sarris said "significant progress" had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.

He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.

Cyprus faces a Monday deadline to clinch a bailout deal with the EU or the European Central Bank says it will cut off emergency cash to the island's over-sized and stricken banks, spelling certain collapse and a potential exit from Europe's single currency.

Amid signs of momentum, Cypriot and EU officials said Cypriot President Nicos Anastasiades was expected in Brussels on Sunday to meet EU leaders including Council President Herman Van Rompuy and Commission President Jose-Manuel Barroso, as well as IMF Managing Director Christine Lagarde and the head of the ECB, Mario Draghi.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Foreign Affairs; Germany; Government; Israel; Russia; United Kingdom
KEYWORDS: cyprus; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom
Coming to a country near you...
1 posted on 03/23/2013 8:13:43 AM PDT by markomalley
[ Post Reply | Private Reply | View Replies]

To: markomalley

To put this prospective. They split the banks off, without any input from customers or citizens. The banks with 100 Euro or less...are the ones without any real taxation (maybe one percent tax). It’s one hundred percent Cyprus citizen.

The accounts over 100 Euro ($130k dollars)? They all go into the bad bank and stand to be taxed at twenty percent (maybe twenty-five percent). Those are mostly Russian billionaires.

The logic here is that the Russians were given a chance to help the poor Cypriots out of the mess and just plain refused....so they don’t need to be part of the solution. They were part of the problem and will be treated as such.

It’s pretty much a fair deal if you ask me.


2 posted on 03/23/2013 8:18:10 AM PDT by pepsionice
[ Post Reply | Private Reply | To 1 | View Replies]

To: pepsionice

The Russian mob doesn’t care about “fair”. Any Cypriot politico who votes for this is a dead man walking. And they know it. They won’t care about whacking EU bureaucrats, either.


3 posted on 03/23/2013 8:20:46 AM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: pepsionice

I would bet that Putin will get his revenge in some form.


4 posted on 03/23/2013 8:21:10 AM PDT by jimbo123
[ Post Reply | Private Reply | To 2 | View Replies]

To: jimbo123

Putin’s revenge will come to Merkel this fall. The German elections will be a major problem. This new Alternative Party for Germany....mostly a fake group to center on the Euro. I think Putin will be helping to finance them and hope to take ten percent of the national vote in Germany.


5 posted on 03/23/2013 8:23:18 AM PDT by pepsionice
[ Post Reply | Private Reply | To 4 | View Replies]

To: markomalley

I wonder who fed the media the line that all of these big deposits are Russian mobster accounts. It sure makes confiscation easier for the masses to accept. It also shows that it is safer for the government mobsters to take a lot from a few than a little from many.

If this is truly Russian mobster money, I expect Cypriot politicians to start dropping like flies.


6 posted on 03/23/2013 8:23:19 AM PDT by SampleMan (Feral Humans are the refuse of socialism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: markomalley

Cyprus made money thought tourism and laundering Russian money. Most of the tourists were from Russia. Say what you will about the Russian money, but it did not cause the problems. The greedy Cypriot bankers caused the problems through bad investment decisions.

Now the Russian depositors will be punished by having 25% of their assets seized, while the bankers go free.

Talk about biting the hand that feeds you. After the Russians get burned they will move on elsewhere. But who will Cyprus get to replace them?


7 posted on 03/23/2013 8:26:09 AM PDT by Cowboy Bob (Democrats: Robbing Peter to buy Paul's vote.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: pepsionice
It’s pretty much a fair deal if you ask me.

Really?

So when Obama nationalizes all 401(k)s (which, if you read the full article is part of what happens here), you'll be OK with that?

So if you've saved up over your entire life and happen to have a little more than $130,000 in the bank, it would be OK for the government to "liberate" a quarter of it?

If that's what you think is acceptable, well, OK.

I understand that there is a need for creditors to be paid. But out-and-out theft doesn't seem like the right way to do it. But YMMV.

8 posted on 03/23/2013 8:26:45 AM PDT by markomalley (Nothing emboldens the wicked so greatly as the lack of courage on the part of the good -- Leo XIII)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SampleMan

“If this is truly Russian mobster money, I expect Cypriot politicians to start dropping like flies.”

Is it possible that they could drop faster than Polish government officials traveling to arussia in a jet?


9 posted on 03/23/2013 8:27:55 AM PDT by MNGal
[ Post Reply | Private Reply | To 6 | View Replies]

To: markomalley
Coming to a country near you...

Yep. The only mistake the EU made was originally demanding that ALL bank depositors take a loss. But governments will learn from that mistake. In the future, they'll just pick a level high enough so that the average man in the street won't riot.

10 posted on 03/23/2013 8:34:54 AM PDT by Leaning Right
[ Post Reply | Private Reply | To 1 | View Replies]

To: markomalley

First it was 9.9%. The people protested, so not it’s gonna be 25%. I expect them to be out in the streets again, only this time really pi$$ed off.


11 posted on 03/23/2013 8:35:05 AM PDT by I want the USA back (Pi$$ed off yet?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SampleMan
I wonder who fed the media the line that all of these big deposits are Russian mobster accounts. It sure makes confiscation easier for the masses to accept.

I'll bet that the Russian mob was tipped off long before the "tax" was announced. Their money is probably somewhere else by now.

12 posted on 03/23/2013 8:37:36 AM PDT by Leaning Right
[ Post Reply | Private Reply | To 6 | View Replies]

To: markomalley; All
Everyone is ignoring one key point..Money poured into Cyprus because the banks were offering much higher interest rates, because they were taking huge positions in RISKIER investments, like Greek bonds ( irony of ironies here). Even with a 25% haircut, these depositors will have still made MORE

To make all these depositors whole would have completely negated any concept of risk/reward.

Merkel's popularity at home is SOARING because she refused to fund the bailout.

However, Cyprus still has a big problem. The haircut is effectively 100%. In addition to the 25% tax on big accounts, there must be very strict controls on $$ leaving the country..otherwise it will ALL depart the day the banks re-open...and as for any NEW $$ being deposited..you can forget it..even by small savers...

I'd like to own a Mattress Warehouse store Nicosia..that's gonna be a booming business

13 posted on 03/23/2013 8:41:50 AM PDT by ken5050 ("One useless man is a shame, two are a law firm, three or more are a Congress".. John Adams)
[ Post Reply | Private Reply | To 1 | View Replies]

To: markomalley

This is a tactic to scare the Russians into bailing out Cyprus


14 posted on 03/23/2013 8:45:56 AM PDT by kidd
[ Post Reply | Private Reply | To 1 | View Replies]

To: markomalley

Rooskies beware !


15 posted on 03/23/2013 9:02:30 AM PDT by Eric in the Ozarks (NRA Life Member)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ken5050

A Mattress Warehouse outlet......

or a Mason jar/shovel manufacturing factory. That’s a good business bet as well.

You’re right about Merkel’s popularity increasing at home, which is important as she has an election coming up this year. She’s viewed as having stood up to a bunch of good-for-nothing, lazy, shiftless Greeks and their Russian mafia puppetmasters. That will translate into votes later this year.


16 posted on 03/23/2013 9:20:38 AM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Leaning Right

>>But governments will learn from that mistake. In the future, they’ll just pick a level high enough so that the average man in the street won’t riot. <<

It’s the wealthy who can afford to hire professional hit men to take out the politicians who voted the wrong way. The common man doesn’t have the skills or resources for this type of operation. They are playing with fire whatever they do.


17 posted on 03/23/2013 9:41:23 AM PDT by B4Ranch (When democracy turns to tyranny, we still get to vote. We just won't use voting boxes to do it.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Leaning Right
The only mistake the EU made was originally demanding that ALL bank depositors take a loss.

The idea was originally put forth by the Cyprus government itself. Of course, once it was on the table, those asked to fund the bailout demanded that it remain so.

But now the general spin is that those poor, innocent Cypriots are forced into something they never wanted and never precipitated in the first place (including their banks melting down due to stupid decisions). Yep, it's ALL the fault of those willing to GIVE money for a bailout. Paging Mr. Orwell, please pick up the white courtesy phone...

18 posted on 03/23/2013 11:20:15 AM PDT by Moltke ("I am Dr. Sonderborg," he said, "and I don't want any nonsense.")
[ Post Reply | Private Reply | To 10 | View Replies]

To: Cowboy Bob
Re post 7. No matter how you cut this Cyprus is in big trouble for years, in not decades.

No one will deposit a penny in Cypriot banks, not even the natives. The Russian tourists might not come back, but the Europeans will flock there, if they can enjoy big discounts in lodging and meals.

That's it, the two industries that Cyrus relied on, tourism and banking, gone in a weekend. Time to look at other industries. Oil and gas? Agriculture?

19 posted on 03/23/2013 11:27:46 AM PDT by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, we'll just grow algae.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: pepsionice

“The logic here is that the Russians were given a chance to help the poor Cypriots out of the mess and just plain refused....so they don’t need to be part of the solution. They were part of the problem and will be treated as such.”

This is a fast-moving story, so I expect that most haven’t been keeping up to date unless you have money in Cypriot banks.

Yesterday, the Cypriot energy minister was sighted in Moscow. It gives credence to the story that Cyprus is hammering out a deal with the Russians to give the Russian investors a stake in the natural gas deposits discovered in the Mediterranean Sea.

Cyprus needs €5.8 billion from the Russians to close out the €10 billion eurozone bailout package to rescue the nation’s banks.

It’s doable, but who knows how many pounds of flesh the Russians want?

Stay tuned. We promise to get very, very interesting next week.


20 posted on 03/23/2013 2:59:58 PM PDT by sergeantdave
[ Post Reply | Private Reply | To 2 | View Replies]

To: SampleMan

“I wonder who fed the media the line that all of these big deposits are Russian mobster accounts.”

Start here:

The Project Democracy networks of George Soros and Mikhail Gorbachov. U.S. Secretary of State Hillary Clinton and the National Endowment for Democracy, run by the commies in the US State Department.


21 posted on 03/23/2013 3:20:37 PM PDT by sergeantdave
[ Post Reply | Private Reply | To 6 | View Replies]

To: pepsionice
They were part of the problem and will be treated as such.

The Russians were part of the problem in Cyprus ? Just because they gave the Cypriots mountains of Euros that the Cyprus leaders decided to use to purchase bonds from Greece. Those bonds took a 75 % haircut when Greece was bailed out last time. That is why Cyprus is bankrupt. How is that the Russians fault ?

22 posted on 03/23/2013 3:23:57 PM PDT by justa-hairyape
[ Post Reply | Private Reply | To 2 | View Replies]

To: pepsionice
It’s pretty much a fair deal if you ask me.

You think that the majority of account holders with balances over $130K are Russian mobsters? How do you arrive at that conclusion? Have they all also been CONVICTED of any crime, or is simply being Russian enough?

23 posted on 03/23/2013 3:25:42 PM PDT by Cementjungle
[ Post Reply | Private Reply | To 2 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson