Posted on 03/26/2013 2:47:10 AM PDT by LiveFreeOrDie2001
NICOSIA (Reuters) - Banks in Cyprus will remain closed until Thursday, and even then subject to capital controls to prevent a run on deposits, after a European Union bailout that the country's president assured his people was in their best interests.
After returning from fraught negotiations in Brussels, President Nicos Anastasiades said late on Monday the 10-billion euro ($13 billion) rescue plan agreed there in the early hours of the morning was "painful" but essential to avoid economic meltdown.
He agreed to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's outsize financial sector ran into trouble when its investments in neighboring Greece went sour.
European leaders said a chaotic national bankruptcy that might have forced Cyprus from the euro and upset Europe's economy was averted - though investors in other European banks are alarmed by the precedent of losses for depositors in Cyprus.
"The agreement we reached is difficult but, under the circumstances, the best that we could achieve," Anastasiades said in a televised address to the nation on Monday evening.
"We leave behind the uncertainty and anxiety that we all lived through over the last few months and we look forward now to the future with optimism," he told compatriots who face an immediate, deep recession and years of hardship unlikely to be milder than those experienced by Irish, Greeks and Portuguese.
Many Cypriots say they felt anything but reassured by the bailout deal, however, and are expected to besiege banks as soon as they reopen after a shutdown that began over a week ago.
(Excerpt) Read more at finance.yahoo.com ...
What if they open up the banks and the money is entirely gone?
I’m wondering about that.
that’s exactly what is going to happen. All the big depositors have already taken their money out via branches in other countries that have remained open this entire time.
In the end they will be forced to confiscate the money of those with less than 100,000 euros in their accounts. The few remaining depositors (to stupid to withdraw their money from a foreign branch) will certainly make a run on the bank when they eventually reopen.
the money is “gone” ... that’s why they needed a $13 billion dollar loan to get a new line of credit to meet (controlled/rationed?) withdrawals
Wonder how long they can make that last?
Not that we can talk, our own banking system is built on a house of cards “guaranteed” by an indebted spendaholic corruptocrat-controlled govt that the globalists just cannot wait to pwn
I read that Brits have been advised to not keep money in Spain banks ... any pensioner expats in the PIIGs who aren’t taking lessons from this are pretty unwise
At this point, the attention needs to shift from Cyprus to Italy and Spain, where every sane person should be withdrawing their money from banks as fast as they can.
If they fail to do so, the more fool them. The “European Junta” has made it clear they intend to loot savings and investments elsewhere, and given fair warning, if you fail to act, it’s your own fault.
I certainly hope people weren’t being paid by direct deposit.
Small and medium businesses can’t be run properly without access to their money can they?
because Americans have been numbed ad dumbed down
“Small and medium businesses can’t be run properly without access to their money can they?”
The socialist morons don’t want to talk about that. If businesses get a 25 to 40% haircut on deposits, how will they meet payrolls and pay vendors? This house of cards is only beginning to fall. The fascists in Brussels are hoping to contain the chaos to Cyprus.
It’s a death spiral
It's not a rescue. And you can discount anything the local Cypriot pols are saying. The fact is that Cyprus should never have been in the EU in the first place. They are only in because back when times were better (or appeared better), the Greeks were able to able to shove them into the EU against will of Germany. This is a chance for the northern block to get some revenge and cream off the profitable Russian business for themselves. BTW, the Russians got out of this mess completely whole. You can take that to the (Belgian) bank. This is war without tanks. Tanks are expensive.
Yep. The Russians have already made a run on the banks. Riots will break out soon.
I have noticed on many threads that lots of FReepers are pulling cash out. At least they say they are.
No, we ARE pulling funds out of the bank. Sure are.
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