Cyprus state broadcaster CyBC reported that German Finance Minister Wolfgang Schaeuble had proposed Cypriots lose 40 percent of their bank accounts although they were not responsible for the economic debacle that was caused when a previous Greek government, in a frantic bid to reduce its debt, imposed 74 percent losses on investors and bondholder. Sarris said the IMF agreed with Germany.
16 MARCH 2013
People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund.
The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the region’s debt crisis.
But in a major departure from established policies, the package also includes a one-off levy on the money held in bank accounts in Cyprus. Analysts have warned that making depositors take a hit threatens to undermine investors’ confidence in other weaker eurozone economies and might possibly lead to bank runs.
In return for the rescue loans Cyprus will trim its deficit, shrink its troubled banking sector, raise taxes and privatise state assets, said the Netherlands’ Jeroen Dijsselbloem, presiding over meetings of the 17-nation eurozone’s finance ministers. “The assistance is warranted to safeguard financial stability in Cyprus and the eurozone as a whole,” he said, speaking after nearly 10 hours of negotiations.
People with less than 100,000 euro (£86,000) in their Cypriot bank accounts will have to pay a one-time tax of 6.75%, those with more will lose 9.9%. The measure is expected to net 5.8 billion euro (£5bn) in additional revenues, Mr Dijsselbloem said, greatly reducing the country’s financing need.
AND NOW, THOUSANDS ARE WITHDRAWING THEIR CASH, CHAOS IS SPREADING IN CYPRUS, AND THE ALARMS HAVE BEEN RAISED IN ITALY&SPAIN&GREECE&PORTUGAL AND IRELAND.
This is HUGE guys, I expect a “contagion effect” to Southern European Countries. The “mafia”(banksters, politicians, Rockefeller, Rotschild, IMF…) is stealing our saved money, so the people is going to answer soon!
Europe Announces Stunning Bailout For Cyprus — Bank Depositors To Get Instant 10% Tax Before Banks Reopen This Week
Eurozone leaders and the IMF on Saturday announced an unprecedented levy on all deposits in Cypriot banks as the sting in the tail of a 10-billion-euro bailout for the near-bankrupt government in Nicosia.
Intended to apply to everyone from pensioners to Russian oligarchs alleged to have billions stashed away in what officials say is a bloated Cypriot banking sector, the “stability levy” immediately raised a flood of concerns among finance experts over a possible bank run in bigger eurozone economies, where fragile public finances are also under scrutiny.
Cyprus-rescue shows, not bank accounts are safe
UPDATE – As is reported from Cyprus was a run on the banks by the “expropriation announcement” instead. Many people tried the morning their accounts with the banks to vacate the Saturdays are open. However, they were informed by bank staff, the computer system of the banks would be put out of operation. To forestall one bank runs, the corresponding amounts have been frozen all accounts of the night. The ECB executive board member Joerg Asmussen said after the talks in Brussels: “Before the banks reopened, the levy deducted. The rest of the money is freely available. ”
How gracious of the ECB, the European Bank forced expropriation. Because you can see how quickly something can go. In the evening you go to bed with the belief that savings are safe and belong to one, and in the morning we get up is no longer ran to his money and is dispossessed. How can one without a law condescendingly decide something simple, has chosen from people who no one? And then deny people the EU is a dictatorship!
The least thing you can draw a lesson from this “Konteneinfrierung” is, you should always have a cash reserve at home. Otherwise, one is as Stupid before ATM or bank receipt where it says, “Because too close!”
Europe Just Pissed Off A Whole Bunch Of Russian Mobsters And Oligarchs With Its Stunning Bailout Of Cyprus
In the early hours of the morning in Europe, the Eurozone and the IMF announced a $10 billion bailout for Eurozone member Cyprus, whose economy is tied closely to Greece’s, and who was in a similarly dire state. The details are here.
A key angle here is the Russian angle.
Read more: http://www.businessinsider.com/cyprus-bailout-russian-angle-2013-3#ixzz2NiZKWZlf
The Cyprus Bank Bailout Could Be A Disastrous Precedent: They’re Reneging On Government Deposit Insurance
There’s a little detail in the just announced bailout of the Cypriot banks (and Cypriot economy as a whole) that could be setting an entirely disastrous precedent for the entire European banking system. Please note the “could be” here, it depends upon how people react next.
That Cyprus and its banks need bailing out is beyond doubt. The banking sector is absolutely vast as compared to the size of the economy (largely as a result of a couple of decades of use as a secure location for Russian deposits) and the banks are indeed bust. Largely because they were heavily invested in Greek Government bonds which then, as we all know, suffered two substantial haircuts.
Europe Does It Again: Cyprus Depositor Haircut “Bailout” Turns Into Saver “Panic”, Frozen Assets, Bank Runs, Broken ATMs
Europe has done it again.
Late last night, after markets closed for the weekend, following an extended discussion the European finance ministers announced their “bailout” solution for Russian oligarch depositor-haven Cyprus: a €13 billion bailout (Europe’s fifth) with a huge twist: the implementation of what has been the biggest taboo in European bailouts to date – the impairment of depositors, and a fresh, full blown escalation in the status quo’s war against savers everywhere.
Specifically, Cyprus will impose a levy of 6.75% on deposits of less than €100,000 – the ceiling for European Union account insurance, which is now effectively gone following this case study – and 9.9% above that. The measures will raise €5.8 billion, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, said.
But it doesn’t stop there: a partial “bail-in” of junior bondholders is also possible, as for the first time ever the entire liability structure of a European bank – even if it is a Cypriot bank – is open season for impairments. The logical question: why here, and why now? And what happens when the Cypriot bank run that has taken the country by storm this morning spreads everywhere else, now that the scab over Europe’s biggest festering wound is torn throughout the periphery as all the other PIIGS realize they too are expendable on the altar of mollifying voters and investors in the other countries that make up Europe’s disunion.
February 2013: President of #Cyprus Anastasiadis: “I will not sign any memorandum that will haircut savings accounts”
Before it is too late. Run to your bank (ATM) and GET OUT all your savings NOW!
The hunt for your hard earned money has begun and it won’t be limited to Cyprus.
Your Government is clearly after your money.
Please don’t complain to me if you lost (part) of you savings. I warned you!
Take Cyprus as a warning and example.