Cyprus surprise - Cypriot depositors to take a 'haircut'

Generali

ChiefGrasscutter wrote: »

I wonder if that is why they are not very enthusiastic about giving too higher a % haircut to the >E100K accounts (assuming these are mostly soviet deposits) - as they would then have to give then more equity in the bank - which if combined might well indeed give the Russians a controlling interest.

You can't force someone to take on property, not really.

The Cypriot banks aren't about to become the problem of the Russians beyond the tax/confiscation.

wotsthat

Graham_Devon wrote: »

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?

I don't think you're even vaguely qualified to be able to comment on how EU legislation is implemented here or in other countries. Seem happy enough though to soak up the line "can't do that - it's the EU innit - can't do nothing about except leave - that'll sort it".

Not sure why I've been proven wrong. As far as I can see the Cypriot government are having to, as predicted, decide which foot to shoot themselves in. You might be a little premature in declaring that they all live 'happily ever after' just because they've decided that instead of taking money from depositors they're going to...err..take money from depositors.

I'm hoping that they decline the bailout or the EU withdraw the offer instead. If ever there was a 'safe' country where the idea of letting the banking system fail to see what happens this is it. No-one's got the balls though so we'll end up with many more years of tails wagging dogs.

socrates

I picked this up from

Cyprus Daily Blog

One massive backlash across the EU by the frightened people, and the rats who composed this awful idea in the halls of Brussels suddenly scatter and point their fingers at Cyprus for daring to ask for money in the first place. How dare they treat us as a Special Case?

Cypriots have done the best they can over 39 years, despite the military occupation of 38% of her land which has removed Kyrenia, Morphou, Famagusta, the Messaoria agriculutral belt and large areas of industrial and tourism value from their rightful access. Perhaps the Germans just FORGOT that only a few years ago, their country was also divided by a MILITARY WALL, and that Berlin, like Nicosia, was split in two. But then, Cyprus is a special case...we are considered a small, fringe outpost with nothing more to offer.

wotsthat

socrates wrote: »

One massive backlash across the EU by the frightened people, and the rats who composed this awful idea in the halls of Brussels suddenly scatter and point their fingers at Cyprus for daring to ask for money in the first place.

The way it's been reported by the BBC seems to imply that there was a joint agreement between the EU to tax depositors but the implementation was all down to Cyprus. Apparently it's the EU suggesting that smaller savers are being treated too harshly. Who knows?

Suppose Cyprus can always decline the offer of money from the 'frightened people and rats'.

socrates

wotsthat wrote: »

The way it's been reported by the BBC seems to imply that there was a joint agreement between the EU to tax depositors but the implementation was all down to Cyprus. Apparently it's the EU suggesting that smaller savers are being treated too harshly. Who knows?

Suppose Cyprus can always decline the offer of money from the 'frightened people and rats'.

Who knows what goes on behind the scenes

Either way the facts still remain

The Cypriots are getting shafted once again

I am thankful that they never set the losses at 38% the exact same figure as the land we lost after the invasion of 1974

N1AK

Graham_Devon wrote: »

Just goes to prove, you don't have to roll over and accept anything the EU states.

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

Find me a reputable source saying that the original rates and bands were EU mandated and I'll accept it as truth rather than nonsense. The EU has been very clear over the last few days that they don't care how the money is raised just that it IS raised; in fact the EU is now openly pushing Cyprus not to target accounts under €100,000 at all.

If the best arguments you can make to support your position are to construct straw men or make things up then I would suggest that you reconsider your position or at least take the time to find more convincing arguments to parrot.

John_Pierpoint

grizzly1911 wrote: »

I think you will find the wealthy are paying the price to keep you in low interest rates, to service your debt and the inflation to erode it.

I think the truly wealthy are sufficiently fleet of foot to have body swerved into equities ?
I am expecting further confiscation in the budget - and the certainty the the economically illiterate "proles" will vote in a "socialist" government next time, in the vain hope it will have any power to make a difference.

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

Am in incorrect in thinking that once upon a time 20 - 30 percent of the island's population was Turkish and they now have a bit more than their fair share of the island?

Why should they not enjoy their share of the gas reserves.

Mind you, while this sort of in-fighting continues it makes it certain that the clever ex pats in North of the Island, won't have the problem of a Greek turning up and demanding back grandfather's field and the nice new villa on it at any time soon. Like the West Germans in East Germany.

I blame it all on Richard the Lion Heart losing sight of his objective.

wotsthat

socrates wrote: »

Who knows what goes on behind the scenes

Either way the facts still remain

The Cypriots are getting shafted once again

I am thankful that they never set the losses at 38% the exact same figure as the land we lost after the invasion of 1974

Depositors in Cypriot banks didn't seem to mind earning high rates of interest though..

Cyprus bank deposits returned more than 24 percent over the past five years, almost double the returns on comparable German accounts.

An investor who put $1,000 in a savings account in Cyprus in January of 2008 and kept the funds there would have earned at least $242 over five years, according to data from the Central Bank of Cyprus. A comparable account in Germany would have returned about $130, calculations based on Bundesbank data show.

http://www.bloomberg.com/news/2013-03-18/cyprus-bank-deposits-returned-almost-twice-germany-s-since-2008.html

There's probably some political mischief going on here but it seems that Cypriot depositors wanted to earn double the rate of interest of a German saver and then expect Germans to protect the gains?

There's a $112 difference or 11.2% over 5 years. The proposed tax of 6.75% would still leave them ahead of their rescuers.

cepheus

wotsthat wrote: »

Depositors in Cypriot banks didn't seem to mind earning high rates of interest though..

http://www.bloomberg.com/news/2013-03-18/cyprus-bank-deposits-returned-almost-twice-germany-s-since-2008.html

There's probably some political mischief going on here but it seems that Cypriot depositors wanted to earn double the rate of interest of a German saver and then expect Germans to protect the gains?

There's a $112 difference or 11.2% over 5 years. The proposed tax of 6.75% would still leave them ahead of their rescuers.

Good point, and did the Depositors pay any tax to the government underwriting these accounts like most of us do?

socrates

wotsthat wrote: »

Depositors in Cypriot banks didn't seem to mind earning high rates of interest though..



http://www.bloomberg.com/news/2013-03-18/cyprus-bank-deposits-returned-almost-twice-germany-s-since-2008.html

There's probably some political mischief going on here but it seems that Cypriot depositors wanted to earn double the rate of interest of a German saver and then expect Germans to protect the gains?

There's a $112 difference or 11.2% over 5 years. The proposed tax of 6.75% would still leave them ahead of their rescuers.

Firstly do you understand the concept of losing your home, your land and all your possessions and being made a refugee?

As for the savings rates - there are all sorts of accounts you can compare - they probably compared a 5 year savings account with an instant access savings account - you can dress the figures up how you want if you want to prove a point