Cyprus surprise - Cypriot depositors to take a 'haircut'

downshifter98

Graham_Devon wrote: »

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


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.

Finally some rational response - removing the protection below 100,000 was/is utter madness and undermines everything that has been done since 2007/8 to stop bank runs. Over 100,000 is a different story - we all now know that over that amount in any one account could be vulnerable in today's climate and certainly anyone over that amount in a cypriot bank must have realised this could happen. Understandable, though, that all are scared of taking too much off the Ruskies...

Graham_Devon

Just goes to prove, you don't have to roll over and accept anything the EU states. Also goes to prove there can be other options, and the threatening scare tactics don't always work.

Even on this thread we've had the "if they don't do it, they will lose all their money" scare tactics used.

downshifter98

Graham_Devon wrote: »

Just goes to prove, you don't have to roll over and accept anything the EU states. Also goes to prove there can be other options, and the threatening scare tactics don't always work.

Even on this thread we've had the "if they don't do it, they will lose all their money" scare tactics used.

yup - the eurozone wanted 5.8 billion and left the Cypriots to decide how this would be reached and the Cypriot leaders (in their wisdom) decided that 10% was the maximum they could take from their 'rich friends' so lets soak the normal people instead - you almost couldn't make it up. Talk of it being a 'tax' and there being no other choice always seemed like deliberate !!!! stirring to me. Still, if it hurries the end of the Euro then happy days.

wotsthat

Graham_Devon wrote: »

Just goes to prove, you don't have to roll over and accept anything the EU states. Also goes to prove there can be other options, and the threatening scare tactics don't always work.

Amazing. Pick any argument about the EU and you'll be there saying we can't do this or that because of the EU and yet a tiny country like Cyprus (that doesn't have a 'voice') doesn't have to accept anything the EU states.

Thrugelmir

downshifter98 wrote: »

yup - the eurozone wanted 5.8 billion and left the Cypriots to decide how this would be reached and the Cypriot leaders (in their wisdom) decided that 10% was the maximum they could take from their 'rich friends' so lets soak the normal people instead - you almost couldn't make it up.

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

socrates

Thrugelmir wrote: »

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

Perhaps they can get together and demand that Britain pays the rent (that they were supposed to pay and never have) on the British Military Bases - its should cover their losses

downshifter98

Thrugelmir wrote: »

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

Oh come on....after what has happened over the past 4 or 5 years the world and his dog knows that keeping the equivalent of over 100,000 Euros in a bank account is risky - safer to stick some into equities, gold, fine art, vintage wine or even the mattress; just the fact that so much has been made re the guaranteed amount strongly implies that amounts over this could be vulnerable and especially so in somewhere such as Cyprus (you makes your choices, etc etc). Meanwhile in the UK all money in the bank is being slowly devalued....ce la vie apparently.

Graham_Devon

wotsthat wrote: »

Amazing. Pick any argument about the EU and you'll be there saying we can't do this or that because of the EU and yet a tiny country like Cyprus (that doesn't have a 'voice') doesn't have to accept anything the EU states.

Do you understand that there is a difference between EU laws which we are all signed up to, and what happened here?

Or are you just trying to have a vague pop because you've been proven wrong?

grizzly1911

What would have happened if you had say EU99000 in each of 5 accounts would they, would they have aggregated it to push you into the 9.9%?

In reality I guess there would be lots of low value accounts <10K, a few in the middle and then the big bucks over 100K so perhaps the actual loss, to the government, isn't that big. A bit like the wealthy in this country paying the lions share of tax..

As far as the North South divide goes how will that work out once Turkey are in the EU?

chewmylegoff

Thrugelmir wrote: »

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

Yes...why should the British government protect assets of people which are held overseas? If you choose to live in cyprus and stick your money in a cypriot bank you can hardly expect the British government to protect you when it all goes wrong - if I put a load of cash in a Cypriot bank I wouldn't expect the British government to bail me out when the bank went bust. It is clear that the FSCS does not apply to overseas banks (except uk branches thereof).

Anyone with any sense would have moved their savings out of Cyprus long ago (or at least the bulk of them anyway). Unless they were dodgy russian money launderers with nowhere else to put it of course.