Cyprus surprise - Cypriot depositors to take a 'haircut'

socrates

Generali wrote: »

@socrates - I heard that for about a sixth of houses in Cyprus, the title has never been transferred to the new 'owner' as the developer needs to keep a mortgage against it. This means that in many cases there are 2 mortgages against properties. Any idea if this is true?

Will give you a full answer in 10 minutes

socrates

It is true and it is something that Troika has stipulated must be dealt with by the end of this year

The link below is a simplified explanation of matters

http://www.cyprus-property-sales-resales.com/Cyprus_Property_Sales/cyprus-title-deeds.html

tomterm8

Generali wrote: »

Just a thought: who the heck keeps more than EUR100,000 in cash? You've gotta be mad, a money launderer or a big business to do that.

Lots of russian oligarchs, for a start. People who are very wealthy but who live in a country where the state only obeys the laws it wants to obey.

These measures are set to raise €5 billion in a tiny economy... probably more than 10% of gdp. You can be sure the vast majority of victims are not from cyprus.

Thrugelmir

tomterm8 wrote: »

These measures are set to raise €5 billion in a tiny economy... probably more than 10% of gdp.

Strip away financial services and one assumes could be nearer 50% or even higher.

buglawton

Will oligarchs r us be sending the boys round?

Generali

socrates wrote: »

It is true and it is something that Troika has stipulated must be dealt with by the end of this year

The link below is a simplified explanation of matters

http://www.cyprus-property-sales-resales.com/Cyprus_Property_Sales/cyprus-title-deeds.html

What a mess. Do you know what happens if the developer defaults on the loan? Presumably there is some provision in Cypriot law to make a bank show who holds the title before foreclosing.

socrates

More comedy from Cyprus

http://www.cyprus-mail.com/coffeeshop/tales-coffeeshop-deleterious-delia-revealed-imfs-own-cruella-de-vil/20130331

socrates

Generali wrote: »

What a mess. Do you know what happens if the developer defaults on the loan? Presumably there is some provision in Cypriot law to make a bank show who holds the title before foreclosing.

Its weird because as I understand it - the buyer registers their name at Land Registry too - so in essence they have security of tenure - all be it not the same security of tenure as in UK

antrobus

tomterm8 wrote: »

...These measures are set to raise €5 billion in a tiny economy... probably more than 10% of gdp.

Cyprus GDP is (or at least was) €17.5bn, so it's more like 29% of GDP.

tomterm8 wrote: »

...You can be sure the vast majority of victims are not from cyprus.

The Central Bank of Cyprus says that 63% of bank deposits are from 'Domestic Residents'. Perhaps it's different for deposits of over €100k in the two big banks. Perhaps not, a lot of those Russkies may well have already read the runes and moved their money yonks ago.

socrates

http://www.guardian.co.uk/world/2013/mar/31/cyprus-casinos-boost-economy

Some of the ideas put forward by our Far Right Wing President

Personally - I would invite the Chinese in to establish a mini Vegas and raise Ayia Napa to the ground - its full of every kind of party goer that the rest of Europe has shunned

A nice airport for the private jets, they have fantastic beaches there

Ruffle Germanys feathers if Chinese money came in - but knowing this Right Wing Supporter it will be the Americans he invites in

Worst thing possible is that they try to do it themselves

Also Cypriots should not be allowed in at all

There was talk a couple years back of the Chinese building a Casino on the old site of Larnaca Airport

Currently there are tens of thousands of cash rich casino players who fly over Cyprus to hit European Casinos