Cypriot Austerity Measures

Malevolence said:
Absolutely shocking behaviour! What if somebody has multiple accounts, will they be having multiple muggings by the government?
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Well as they are taking a percentage, I wouldn't have thought having multiple accounts will mean someone will lose more. If anything, they might lose less since it's 6.75% for people with less than 100k and 9.9% for the others, and I imagine they won't be that great at tallying up multiple accounts in the same name to see who has gone over the 100k.

I wonder if they've thought through the possible repercussions of this, such as people moving their money out of the country causing more harm to the banks in the country, or even just keeping their money as cash.
 
How are they going to differentiate between savings and current accounts or money that is just in the bank temporarily? It seems like they aren't, they're just taking their cut from whatever is in the accounts this weekend. Who would bank in Cyprus after this?

Just sold your 200,000 house last week and haven't completed on your new one yet? Sweet, we'll be stealing 20,000, thanks!
 
Dangerous precedent, not only the seisure of assets of "investors" -could they spin this anymore! But they've treated Cypriots like 2nd class Euro citizens by making them take a hit when everyother nation that's been bailed out had their savers protected.
 
Housey said:
Astonishing and incredibly risky move. This will not end well I fear, markets will **** it come Monday I suspect.
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Castiel said:
If I lived in any Eurozone country I would be moving my money out of any Eurozone bank first thing Monday morning.
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Perhaps Sterling will claw back its recent losses on the back of this, probably not what the Government wants, but hey ho.

See how Asia reacts when it opens tomorrow night.
 
Castiel said:
I can't see how this is legal. It will cripple Cypriot Banks and destroy any trust in them. What are they thinking?
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I don't see how its illegal... I can certainly see that its very very unfair. Taxes on assets do happen though... tis fine IMO when the value of your estate is being taxed after you die... its not really fine to simply grab a portion of all bank deposits.
 
Strife212 said:
If I was in Cyprus I'd withdraw every penny I had, can't see how this won't cause a run on the banks.
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they cant, its a bank holiday monday, and the banks are restricting movement electronically. so come tuesday morning wooosh, moneys taken and everyone's left with shares which will drop like a stone as everyone empty's there accounts out.
 
233 said:
just wondering if our government would ever try anything like this?
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Depends how far you want to go back. I do recall America doing something similar with Gold (making it illegal to own and you had to surrender it to the state), Mrs Mental in Argentina has drained the country's pension and lets not forget Mr Brow's fiddling with UK pensions...
 
dowie said:
I don't see how its illegal... I can certainly see that its very very unfair. Taxes on assets do happen though... tis fine IMO when the value of your estate is being taxed after you die... its not really fine to simply grab a portion of all bank deposits.
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ECHR says:

Article 1 – Protection of property

"Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.

The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties."
 
Muffin` said:
ECHR says:

Article 1 – Protection of property

"Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.

The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties."
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That right has never applied to taxation, which of course makes it prettt much pointless.
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