Cyprus surprise - Cypriot depositors to take a 'haircut'

ChiefGrasscutter

Meanwhile the cupboard is bare.
http://www.spiegel.de/international/europe/cypriot-parliament-investigates-government-after-dubious-transactions-a-891168.html

Thrugelmir

socrates wrote: »

Its a case of the blind leading the blind - but the real reason is no-one can understand the instructions is that they are in GERMAN

Not Greek.....;)

Seems the way of the world to blame everyone else but ones selves.

Why did Cypriots borrow money to buy bank bonds? Wasn't that the interest rate was higher on the investment than the cost of borrowing by any chance. Greed comes at at a price. As nothings for free.

socrates

Thrugelmir wrote: »

Not Greek.....;)

Seems the way of the world to blame everyone else but ones selves.

Why did Cypriots borrow money to buy bank bonds? Wasn't that the interest rate was higher on the investment than the cost of borrowing by any chance. Greed comes at at a price. As nothings for free.

I do not disagree with you

ILW

Hopefully there will be a resurgence of "moral hazard" which seems to have been forgotten about lately.

grizzly1911

ILW wrote: »

Hopefully there will be a resurgence of "moral hazard" which seems to have been forgotten about lately.

If we have more (resurgence) moral hazards isn't that a bad thing?

Graham_Devon

Theres a few more controls out this afternoon.

One of them is any non cash payments of over €500 will require documentary evidence that you need to make that payment.

Hows that ever gonna work?!

Few more:

- a limit of €3,000 on cash that can be taken out of the country per trip abroad
- Cypriots studying abroad allowed to transfer €10,000 per quarter out of country
- suspension on cashing cheques but allow cheque deposits
- a ban on redeeming time deposits before maturity
- a cap on all credit/debit card transactions abroad to €5,000 per person per month
- non-cash payments for over €500 will require documentary evidence

Since then, there has been a total ban on all credit card payments for goods outside of Cyprus. Instead, the €5,000 cap will relate to limits on money spent within Cyprus. So basically, they can't buy any goods outside of Cyrpus now, as sending money outsid eof Cyprus is banned and credit and debit card payments banned.

They haven't even finished the proposals yet, so how banks can now open tommorow is beyond me.

socrates

New: EU task force to assist Cyprus

More evidence that Cyprus is a guinea pig in EU bosses eyes


http://www.cyprus-mail.com/cyprus/new-eu-task-force-assist-cyprus/20130327

CLAPTON

it would seem that Cypriots will soon develop a love of travelling

socrates

CLAPTON wrote: »

it would seem that Cypriots will soon develop a love of travelling

You know that - probably to deposit their money in mainland Greece - they seem to follow them like lost sheep - even if they are going over a cliff

CLAPTON

socrates wrote: »

New: EU task force to assist Cyprus

More evidence that Cyprus is a guinea pig in EU bosses eyes


http://www.cyprus-mail.com/cyprus/new-eu-task-force-assist-cyprus/20130327

it would seem to me that means a financial police force to ensure that money isn't syphoned out of the country.