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