Cyprus surprise - Cypriot depositors to take a 'haircut'

John_Pierpoint

Once upon a time the third richest country in the world in terms of GDP per head.
http://en.wikipedia.org/wiki/Corralito

Graham_Devon

Banks are apparently to be closed under 26th March. (Tues next week).

Apparently the anger in Cyprus is ramping up too. Small traders are now finding it extremely difficult to function.

Edit: Now confirmed, they will be shut until at least Tuesday of next week.

DiggerUK

The Cyprus Job, is possibly to be followed by The New Zealand Job.

Seems like the guarantees on depositors funds is not worth the paper it is written on any more.
..._

Thrugelmir

antrobus wrote: »

Which is part of the problem. Were the two main Cypriot banks to become insolvent, then the Cypriot government would apparently have to find 30 billion euros to meet that obligation.

The banks are insolvent. This is the fundamental issue.

They require 10 billion Euro to recapitalise.

wotsthat

Cypriot parliament has a plan B that they're going to vote on tomorrow.

It's...err...a levy on bank deposits. This time only on deposits over 100,000 Euro. Should get the support of everyone with deposits under 100,000 Euro - nothing wrong with a tax as long as someone else is paying it.

http://www.bbc.co.uk/news/world-europe-21870801

Thrugelmir

wotsthat wrote: »

nothing wrong with a tax as long as someone else is paying it.

Not strictly a tax. As in exchange you will will receive a piece of paper giving you part ownership in a bank.

In the UK we've had nothing for our tax money.

socrates

Thrugelmir wrote: »

Not strictly a tax. As in exchange you will will receive a piece of paper giving you part ownership in a bank.

In the UK we've had nothing for our tax money.

Don't spoil it for him - he is desperate for Cyprus to implode

Just wait and see what happens when it affects him

Meanwhile in several years when Cyprus extracts its natural reserves worth over £30 billion - he will still be talking about haircuts

The Cypriots are savers by nature and we will survive - Lord knows we lost half our island and we are still here...

Thrugelmir

socrates wrote: »

The Cypriots are savers by nature and we will survive - Lord knows we lost half our island and we are still here...

People will survive whatever the financial outcome.

The wider issue is the fact that the Eurozone is far from being stable as a fiscal entity. Cyprus brings home how fragile the situation is. The fight for the energy reserves will be interesting.........

socrates

Thrugelmir wrote: »

People will survive whatever the financial outcome.

The wider issue is the fact that the Eurozone is far from being stable as a fiscal entity. Cyprus brings home how fragile the situation is. The fight for the energy reserves will be interesting.........

Back in the day I remember people in my family saying - if there was oil in Cyprus - the island would never have been divided - they would never just ignore the problem and allow it to fester for so long

Lets see what happens now the reserves have been found - if Russia gets control - they will have a stranglehold on Europe

If the Israelis get control - what problems will that cause

If the Chinese get involved.......

wotsthat

socrates wrote: »

Meanwhile in several years when Cyprus extracts its natural reserves worth over £30 billion - he will still be talking about haircuts

My guess is that there were talks between Cyprus and Russia today to try and mortgage future gas extraction. I assume that at some point this afternoon there came a call from Moscow along the lines of "you know how we've been portraying Angela Merkel as Adolf Hitler's long lost daughter? Well compared with this lot she's like Mother Theresa - start backtracking!"