Cyprus surprise - Cypriot depositors to take a 'haircut'

mcfisco

ILW wrote: »

That is the way it is supposed to work.
It has now been decided that savers are the ones that caused all the problems and they need to be punished though.

Well, it's [rightly] been decided that savers are the only ones with liquid assets.

antrobus

Graham_Devon wrote: »

Cypriot banks are now closed until Thursday.

Complete and utter sham. How are people supposed to access their money or pay bills?

Surely they can't just leave people with nothing?

Every bank in Cyprus is now dead.

There are a limited range of options available that might possibly reanimate the corpses.

dryhat

The_White_Horse wrote: »

it's a joke. now the banks are shut until thursday. the people can starve in the streets, the EU doesn't care. as long as the corrupt inept hateful junta keeps rolling.

This will be a good education for the cypriot people and a lesson for all of us on how to survive without banks and their worthless paper that is not worth the paper it's not printed on.


They'll be ok. They've got a nice climate, loads of lovely home grown food and loads of seafood. nice wine and a generally happy disposition.
They will find a way to carry on enjoying that and I wish them the best of luck.

ChiefGrasscutter

The CURRENT savers remember, not those who had money in the banks up to say last week and for the past year and recently removed it.
That's the other "funny" aspect of all this - it takes a snap shot of what is what today and says right you lot are to blame for the last x years of mismanagement whatever and you will take the haircut.

Goodness knows what is going to happen when they re-open as the haircut will affect current accounts and business accounts including credit card company accounts. If you have paid a deposit for something, your deposit will be haircutted as will be your own bank account. Does the supplier come and ask you more money/invoice you more than agreed to cover the fact that the deposit is now less by x% than it was last week.

wotsthat

After a couple more days sh*tting bricks about whether they'll see any of their money back I suspect depositors will be more supportive come Thursday.

I don't foresee any issues with them being able to withdraw all of their savings either - as long as they don't mind limiting it to 10 Euro every third Wednesday.

The_White_Horse

imagine if they do that here, when people are in the process of moving!!! Oh look, you usually have £5k in savings, but because you sold your house for £300k and were just about to complete tomorrow, you must now pay £30k in tax.

er, but now I can't afford the house I was going to buy?

tough.

ILW

ChiefGrasscutter wrote: »

The CURRENT savers remember, not those who had money in the banks up to say last week and for the past year and recently removed it.
That's the other "funny" aspect of all this - it takes a snap shot of what is what today and says right you lot are to blame for the last x years of mismanagement whatever and you will take the haircut.

Goodness knows what is going to happen when they re-open as the haircut will affect current accounts and business accounts including credit card company accounts. If you have paid a deposit for something, your deposit will be haircutted as will be your own bank account. Does the supplier come and ask you more money/invoice you more than agreed to cover the fact that the deposit is now less by x% than it was last week.

Wonder if any of those involved in this deal have withdrawn any large sums in the last week or two?

ILW

mcfisco wrote: »

Well, it's [rightly] been decided that savers are the only ones with liquid assets.

Apart from bondholders.

dryhat

The_White_Horse wrote: »

imagine if they do that here, when people are in the process of moving!!! Oh look, you usually have £5k in savings, but because you sold your house for £300k and were just about to complete tomorrow, you must now pay £30k in tax.

er, but now I can't afford the house I was going to buy?

tough.

That would seriously p155 anyone off regardless of their views on house prices.

socrates

A question that keeps coming to mind is - what is the benefit to Germany in all of this - why are they bothering to give this money?