Cyprus depositors now set to lose 60%

Fella

http://www.bbc.co.uk/news/business-21982652

Bank of Cyprus depositors with more than 100,000 euros (£84,300; $128,200) could lose up to 60% of their savings as part of an EU-IMF bailout restructuring move, officials say.....

Eye-watering stuff. Wonder which country will be next.

grizzly1911

Fella wrote: »

http://www.bbc.co.uk/news/business-21982652

Bank of Cyprus depositors with more than 100,000 euros (£84,300; $128,200) could lose up to 60% of their savings as part of an EU-IMF bailout restructuring move, officials say.....

Eye-watering stuff. Wonder which country will be next.

I read it as could lose100%. The locked in part (40%) may only be repaid if the Bank can afford it.

A bit rich if the guy with EU99999 gets a way with no penalty. Not that I am advocating that they should be hit below the threshold, or to that extent above it either.

As it also hits all accounts above the limit it must effectively stop meaningful trade.

wymondham

Does this affect normal savers with high amounts? So all those who saved for their retirement for instance suddenly finding 60% has gone?
If so then that's terrible, and not a great advert for Team Euro!

Yorkie1

As I read the news, it affects any account holders irrespective of who they are.

I also interpret the news to mean that for each account holder, the first E100,000 is protected, and it is the surplus over that amount which is under attack. As opposed to all of it being vulnerable if the total amount is over E1000,000.

stinktankcynic

It's theft on a grand scale. With all the so called bad guys of the world out there, this grab is up there with the worst. I cannot understand how people with PPI can claim back from the banks, how the banks were fined for libbor and yet it is OK to rig the base interest rate, print money and in Cyprus case, just take money off people. Everything in the EU now just happens without anyone having a say.

Going4TheDream

stinktankcynic wrote: »

It's theft on a grand scale. With all the so called bad guys of the world out there, this grab is up there with the worst. I cannot understand how people with PPI can claim back from the banks, how the banks were fined for libbor and yet it is OK to rig the base interest rate, print money and in Cyprus case, just take money off people. Everything in the EU now just happens without anyone having a say.

I quoted as much on another thread the other day

People however will passively accept it and 'therefore almost 'endorse' it by their lack of European wide protest'

This is just setting the scene for further bank raids on the next country that befalls a similar bailout requirement

After all why should countries borrow more than they have to when savers can be robbed.

What next, a European wide savings snatch across the board to help any and every country even if you don't live in the country being bailed out?

Can any of us be really sure that something like that couldn't happen?

newbie1980

it reads that 40% will attract interest (interest only payable if bank performs)

ChiefGrasscutter

stinktankcynic wrote: »

......and in Cyprus case, just take money off people. Everything in the EU now just happens without anyone having a say.

The money is not there, it never was, it has been lost by the banks over time, it is not there to give back, The Cypriot deposits are just numbers on a page with no real money behind it.
No one is "taking/stealing/taxing" anything. It is "just correcting" account balances shown on the screen to reflect reality.

This is how banks work and always have done. They borrow from depositors (us) on a short term basis and lend to businesses etc on a long term basis. There is never enough money available as raw cash to pay all the despositors back at any time. It is all leant out. Banks can afford some losses but if lots and lots and lots of these loans made by the bank go bad then there is no money to repay the depositors. The bank goes bust and depositors loose their money........Cyprus.

Happened with regularity in the UK in the 1800's when banks issued their own cash notes which made it worse as if the bank subsequently collapsed even these notes in circulation would be refused acceptance by other institutions. Back then there was no small depositors protection! so they lost the lot.