Banking in Cyprus

[ianz29]

As you well know Cyprus has required a major bailout and part of the loan condition is they have put a 9.9% TAX on savings over a 100.000 euros and a 6.9% on savings under this amount which, means the government of Cyprus is taking the amount from your account wether they like it or not.Do you think the Turkish government in times of dire need would do this ??????:boom:

 

[gerald]

It wasn't Cyprus that insisted on this it was the Eurozone lenders.

Now that the precedent has been set you can expect this to be the norm for all future eurozone bailouts. As for those outside the Euro, its demonstrates an easy way to implement a treasury windfall.

On the other hand what was the alternative? Bankrupt country? Failed banks? Total loss of deposits?

 

[kemerkid]

There has been a rumour in the wind that laws have been passed here in Turkey that enable the government to rifle bank accounts if they feel the need. Although this is the 21st century things don't change much in the order of things and not just in Turkey.

 

[rosehillgirl1]

Hi,

The power that be in the EU are aware that huge amounts deposited in Southern Cypriot banks is money owned by non-resident Russians and is the proceeds of money laundering.

South Cyprus is one of the biggest money laundering centres in the world. The economy there has been dependant on the proceeds of Russian crime for many years. They were told to clean up their act years ago but they didn't.

The South Cypriot government heavily invested in Greece and have now paid the price-they always wanted to be part of Greece-they killed thousands of people trying to achieve just that-a case of 'be careful what you wish for as you just might get it'.

I can understand that Austria and Germany don't want to step in and bail out such a corrupt economy built on the proceeds of Russian crime. Sadly the ordinary Cypriot (and other) man in the street is caught up in this mess-collateral damage.

How exactly did 'half' of this small, troubled, corrupt little island beome a full EU member-it beats me.

Ann

 

[tykatem]

No consultation with the Cyprus Parliament. No discussions, no exemptions, no allowances. The EU have decided - that's it.

What will happen in the future if the EU budget needs a boost to pay for reloading the trough? Consider this as a small scale test run of an extremely dangerous piece of new EU fiscal machinery. If it works, could the next stop be Italy, Greece and Spain?.

Welcome to the Brave New world of the European Super State (EUSSR).

Pete

 

[rosehillgirl1]

No consultation with the Cyprus Parliament. No discussions, no exemptions, no allowances. The EU have decided - that's it.

What will happen in the future if the EU budget needs a boost to pay for reloading the trough? Consider this as a small scale test run of an extremely dangerous piece of new EU fiscal machinery. If it works, could the next stop be Italy, Greece and Spain?.

Welcome to the Brave New world of the European Super State (EUSSR).

Pete

Hi,

I think there will be a steep rise in sales of home safes.

The 'Mattress Bank' looks like a good option-what with negative interest and the powers of the EU to take what they like from you. Burglars will be delighted at that prospect.

Ann

 

[Scotty]

This was theft and underhand deceit carried out when the banks were closed over the long week end. The EU can carry on with their bailouts but it is all smoke and mirrors. I live in Spain and only keep a working float in my Spanish bank as nothing has been "fixed" by the EU money here. Only last month all the Pharmacies were on strike as they were six months behind with their payment from the Government for services and drugs supplied.

This will play and play but we are all aboard a sinking ship in Europe. After years of being warned about the risk of keeping my money in Turkey, it remains there and in England as they are both outside the EU zone. Look out for a run on the euro tomorrow, I will certainly be taking mine out of the bank.

Scotty

 

[TCJ]

This move has to be ratified by the Cyprus Parliament. This was supposed to be meeting today but the vote has now been postponed until tomorrow. The President is warning that if the deduction is not approved, and the bailout is abandoned, then Cypriot banks will collapse. So it may be a case of lose 9.9% or lose the lot.

Cyprus parliament delays vote on deposit levy to Monday | Reuters

 

[oldfogy]

As you well know Cyprus has required a major bailout and part of the loan condition is they have put a 9.9% TAX on savings over a 100.000 Euro and a 6.9% on savings under this amount which, means the government of Cyprus is taking the amount from your account whether they like it or not. Do you think the Turkish government in times of dire need would do this ??????

I think that if one country can get away with it then other countries will do the same as soon as they think they need/want to.

When I first heard of this I misunderstood what had been said and thought they were talking about a extra tax on a persons interest.
Now in the cold light of day I see that piracy is not really dead, just a chancellor masquerading as a

 

[juco]

Talking the UK the only reason to keep money in the bank is for safekeeping as the interest rate is almost non existent. They have just taken away that safety net and notice they called it a tax so they could circumvent EU law which protects money up to a certain level, by calling it a tax they can just steal it.
I just hope there is a run on the banks throughout the EU, I will be one of the first in the queue Monday morning to withdraw mine and cant wait to tell them the reason why!

 

[Tommie]

From the BBC website

Depositors in the overseas arms of Cypriot banks will not be hit. Bank of Cyprus UK and Laiki Bank UK both confirmed on their websites that there would be no impact.

Full article Cyprus bailout

 

[Chinook]

I think that if one country can get away with it then other countries will do the same as soon as they think they need/want to.

It isn't a Cyprus government initiative but an imposition by the EU as a condition for their bail out loan

 

[parrot]

There has been a rumour in the wind that laws have been passed here in Turkey that enable the government to rifle bank accounts if they feel the need. Although this is the 21st century things don't change much in the order of things and not just in Turkey.

Certainly had me thinking,how safe is money in a Turkish bank account.They don't have any qualms about lending money on properties to builders who don't own the properties,in the hope of a repossession,a win win situation.

 

[juco]

Of course this isnt the end of the matter, if we can believe that one of the reasons for `grabbing` the money is Russian money laundering that could be a bad move as Russia supplies a load of gas to europe via the international pipeline and the UK is connected to that so we import some of our gas.
Now if the EU has upset Russia over this then watch the hike in gas prices later on (retribution). Even if our imports from Russia are not that great it will be a good excuse for the uk gas companies to whack another increase on us all, blaming of course the Russians.

 

[TCJ]

The parliamentary vote has been delayed again. It is now expected tomorrow. The Cypriot Government is rumoured to be wanting to reduce the lower rate levy to 3% rather than 6.7%. Predictably Putin is complaining that this is unfair to his Russian Mafia mates - sorry that should read honest, hard-working Russian families.

 

[teresa]

There has been a rumour in the wind that laws have been passed here in Turkey that enable the government to rifle bank accounts if they feel the need. Although this is the 21st century things don't change much in the order of things and not just in Turkey.

Recently a friend told me he asked at Finans what the odd deductions were in his savings passbook, a few kurus here and there. He was informed it was a Govt sweep through the accounts. I suppose like the supermarkets not giving change, the odd little bits add up.

 

[oldfogy]

The parliamentary vote has been delayed again. It is now expected tomorrow. The Cypriot Government is rumoured to be wanting to reduce the lower rate levy to 3% rather than 6.7%. Predictably Putin is complaining that this is unfair to his Russian Mafia mates - sorry that should read honest, hard-working Russian families.

Sounds more like they are trying to give people more time to reduce their savings or take it all out, not forgetting it's only ATM withdrawals that have a limit on them, not over the counter withdrawals.

 

[TCJ]

Sounds more like they are trying to give people more time to reduce their savings or take it all out, not forgetting it's only ATM withdrawals that have a limit on them, not over the counter withdrawals.

Don't think so, OF. Reports are now saying that banks will not open before Friday. So there is plenty of time to do a deal or fail to do so and test the the resolve of those determining Eurozone policy. My guess would be that if economics decide matters the EU decision makers are willing to let Cyprus go bankrupt. However, from the political point of view wouldn't this just throw the Cypriots into the arms of the Russian Government? Remember the Russians have already made large loans to them.

 

[skydog]

Do you think the Turkish government in times of dire need would do this ??????:boom:

Cameron thinks:''Now this is a good idea.......''

 

[Maisie]

Is there ever likely to be a better reason for the UK pulling out of the EU?

Maisie