Cyprus surprise - Cypriot depositors to take a 'haircut'

Graham_Devon

I've just read this was actually illegal.

Up until last night when they decided to pass a law to implement it and make it legal.

No one can forsee that sort of game playing. The fact that they made a law to do this overnight and then did it in a way which stops anyone getting access to their money before the levy is taken from the account is totally sickening.

Notice bond holders got away scot free.

It's set a precedent now that it's OK to change the law and OK to effectively steal from savers without even giving them a chance to do something about it. That is very very scary. If this goes down ok, what could they do next?

This also hits many who have short term savings. The stories are starting to come through now. People had put by set amounts to pay for services or goods, and now they won't have the correct money, which means incurring fines and suchlike.

Question: Does this hit current accounts too?

Shushannah

My mother is retired in Cyprus. Any ideas what to advise her as she is living off her savings there?

antrobus

cepheus wrote: »

British Depositers might be unaffected
...

British depositors in British banks will be unaffected by the levy. The Bank of Cyprus UK Limited is a British bank, albeit one owned by a Cypriot bank.

Mr_Mumble

I'm intrigued at how these stories are covered by the British press. Currently this is the no.1 story at The Times, the Financial Times and BBC online. It's the no.3 story at The Guardian (but comments aren't allowed), the no.1 finance story at The Telegraph but it has been relegated from the lead stories (despite a noisy comments section with over 700, allowed, comments).

However, go to The Mail, The Sun and Mirror websites... nowt. Given the historic ties between Britain and Cyprus you'd think there would be plenty of ex-pats who may be losing some money here and the tabloids should provide a little public service and inform their readership!

epz wrote: »

UK depositors avoiding uk tax by any chance?

if so screw them.

Cyprus was a British colony until 1960, we've still got two military bases on the island, so it makes sense that British citizens are the largest overseas savers - barring the recent Russian money.

HAMISH_MCTAVISH

Graham_Devon wrote: »

We can't get out of the EU quick enough......

We can print our own currency so do not need Eurozone bailouts.

Graham_Devon

HAMISH_MCTAVISH wrote: »

We can print our own currency so do not need Eurozone bailouts.

Doesn't matter if we need a bailout or not.

The prime factor in this is that money is required.

If laws don't stop the EU from doing this, and they just change them, I can't see that we are somehow covered because we don't need a bailout. If the EU goes further down what is going to stop them imposing anything they like?

You can't still be suggesting the EU is a good thing, even after this charade?

HAMISH_MCTAVISH

Graham_Devon wrote: »

Doesn't matter if we need a bailout or not.

The prime factor in this is that money is required.

You can't still be suggesting the EU is a good thing, even after this charade?

You really have no understanding of this matter.

Depositors to banks have taken a haircut as a condition of the banks and state being bailed out. Not because they're members of the EU.

It could just as easily have been the IMF bailing them out and demanding similar conditions.

This has nothing to do with EU membership other than they don't have their own currency and so cannot print their way out of the crisis.

We do and can, therefore it's of no relevance to us.

By the way Graham, you seem to have no problem with borrowers getting screwed, ie, BOI reneging on their trackers, so why show such favouritism to savers?

If laws don't stop the EU from doing this, and they just change them, I can't see that we are somehow covered because we don't need a bailout. If the EU goes further down what is going to stop them imposing anything they like?

The EU did not just unilaterally change a law to take people's money.

It was a condition of the bailout, negotiated by a democratically elected government.

They had a choice.... They could refuse the bailout on those terms.

They accepted them.....

IronWolf

What are they going to do if these russian oligarchs decide to withdraw all their money? I mean whats to stop them doing the same thing again?

yangptangkipperbang

HAMISH_MCTAVISH wrote: »

The EU did not just unilaterally change a law to take people's money.

It was a condition of the bailout, negotiated by a democratically elected government.

They had a choice.... They could refuse the bailout on those terms.

They accepted them.....

You REALLY believe that ????

Once the EU has its claws into you it's like being given a choice of being shot or being hung - SOME CHOICE.........!

Good news for the UK though - more votes for UKIP........

HAMISH_MCTAVISH

IronWolf wrote: »

What are they going to do if these russian oligarchs decide to withdraw all their money?

Too late, the levy has been applied already, and will be completed before the banks reopen after the weekend.

I mean whats to stop them doing the same thing again?

There is nothing to stop ANY government applying whatever taxes and levies it chooses to, at any time.

From Osborne's VAT hike (which will cost most UK residents more over the term of this parliament that this one-off levy will cost most Cypriots) to Roosevelt's confiscation of all privately held gold in the USA in the 30's, as well as confiscation from Australian Gold owners in the 50's and UK Gold owners in the 60's, to the UK government's confiscation of many types of valuable privately held firearms in the 1990's, to Brown's raid on pensions, or indeed their tax raid with no notice on some types of property purchase last year.

Governments can choose to raise taxes or seize assets whenever they want.

This is simply a one-off tax.

No different to many other taxes.