Cyprus surprise - Cypriot depositors to take a 'haircut'

Thrugelmir

antrobus wrote: »

The first thing that Iceland did after its banks died, was to reinvent them PDQ.

Was their overseas operations that collapsed not domestic.

Like the Germans. Very active in the USA during the credit boom. Careful not to poop on their own doorstep though.

dryhat

Graham_Devon wrote: »

Apparently, according to a TV station in Cyprus, parliament don't have enough support to back this bill, therefore, it could be rejected.

Someones just blinked.

Edit: The vote which was postponed to today has now been postponed until tomorrow.

Maybe they are reconsidering gazprom's offer.

ChiefGrasscutter

wotsthat wrote: »

Can't really see them rejecting the bailout offer or negotiating a much better deal so probably looking for a way to sweeten the pill. Maybe an increase for those over the 100k threshold and a reduction for those under.

I can quite see them end up having to totally safeguard those deposits below E100K - such a mess they have made of it to date.

If so, the % haircut for those over E100K is going to be quite large - and the Russians will not like that one bit.
In my mind I can just see a cartoon of Vladimir Putin with his hand on a large wheel connected to a huge valve on a pipeline which is tag marked "western oil supply".

What with the banks seemingly now closed 'till Thursday (presumably to put in systems to frustrate any bank runs electronic or in person) it really is a garguantan shambles of biblical proportions.

socrates

To be honest - going with the Russians on the Natural Gas Reserves is a sensible move - it means that Turkey will not be able to muscle in on the finds - which they have already made noises about

However our President who is very Right Wing will never work hand in hand with the Russians

It is already planned out just like the invasion in 1974

grizzly1911

ChiefGrasscutter wrote: »

I can quite see them end up having to totally safeguard those deposits below E100K - such a mess they have made of it to date.

If so, the % haircut for those over E100K is going to be quite large - and the Russians will not like that one bit.
In my mind I can just see a cartoon of Vladimir Putin with his hand on a large wheel connected to a huge valve on a pipeline which is tag marked "western oil supply".

What with the banks seemingly now closed 'till Thursday (presumably to put in systems to frustrate any bank runs electronic or in person) it really is a garguantan shambles of biblical proportions.

I think that Russians will get their payback in spades as you point out.

As you politely point out it makes you wonder if all the negotiators had been down the beirkeller first.

Graham_Devon

Proposals are now in place to protect anyone with under €100,000. I.e. no levy will apply to these people.

The EuroGroup has decided to give Cyprus more flexibility over the bank levy, a Greek finance ministry source has told Reuters.

The EuroGroup has agreed that depositors with less than €100,000 should be protected, the official said.

Sense is starting to finally prevail. Took some time.

Over €100,000 and theres no protection, so I guess at that point, it's tough love. Would still prefer it applied to all, bond investors included, but hey, things are starting to look much better than initially.

I do worry about the mindsets of people like Christine Legarde and Angela Merkel though. Dangerous people. I've read that Legarde wanted 40% off everyone.

Thrugelmir

socrates wrote: »

To be honest - going with the Russians on the Natural Gas Reserves is a sensible move - it means that Turkey will not be able to muscle in on the finds - which they have already made noises about

However our President who is very Right Wing will never work hand in hand with the Russians

It is already planned out just like the invasion in 1974

What if the option were to be to exit the Eurozone? Would the offer then make a viable alternative.

As the bank levy is only the first of several measure that'll be required to receive the bail out funds.

gagahouse

The Russians weren't consulted on the rescue package because it was directed at them. It confiscates Russian money and will drive the remaining deposits out of Cyprus, wrestling control of Cyprus back, the renegade tax haven. Witness the backtracking on deposits less than 100K and a greater burden on the large deposits.

Sounds a bit crazy right? Look it at in the context of a cold war era proxy war happening in Syria now, Russia arming and sustaining Assad, the West arming and sustaining the FSA. Cyprus is the financial conduit through which Russian arms deals are done with Iran and Syria. Drive the Russians out and you break that supply line, making the job in Syria easy and at the same time destroying Russian hopes of a warm water port in either Syria or Cyprus.

There are big stakes here, I don't expect a light Russian response.

dealer_wins

meljm2 wrote: »

glad i am in gold and not in properdee now

Whats that, you half sovereign round your neck LOL

socrates

Thrugelmir wrote: »

What if the option were to be to exit the Eurozone? Would the offer then make a viable alternative.

As the bank levy is only the first of several measure that'll be required to receive the bail out funds.

Personally - I think this all goes back to the previous idiot President who buried his head in the sand

Supposedly he was a Communist:

he knew we needed this money ages ago

he also knew that Europe had no intention of solving the Cyprus Problem i.e. the divided island -

he knew the Turks were making noises about their share of the Natural Gas Reserves

he knew the Russian account for 15% of the Cypriot Economy

he should have campaigned to pull Cyprus out of Europe and align itself with Russia

Now I come to think of it - everyone knew this

Perhaps he never....