Cypriot Austerity Measures

[PapaLazaru]

Bank deposits in Cyprus are largely made up with Russian money, I have no doubt that a lot of it is dodgy as well. There are also a lot of Russian Casinos over there (money laundering) and a big Russian mafia presence. They are the one's that are holding most of the funds and the tax is mainly on them.

Whilst on the outside it sounds unfair, the country has been making big profits on these casinos and by holding dodgy money.

 

[Judgeneo]

^Not mainly.

Russian money accounts for ~50% of bank deposits, of that a significant chunk is legal. I wouldn't be surprised if the second biggest foreign investment in Cyprus is from the UK either.

 

[PapaLazaru]

^Not mainly.

Russian money accounts for ~50% of bank deposits, of that a significant chunk is legal. I wouldn't be surprised if the second biggest foreign investment in Cyprus is from the UK either.

That may well be, but when I last when there the place stank of dodgy Russian money all spending it in Russian owned Casinos.

 

[Ilikeitblackplease]

I wouldn't exactly call the yields on government debt 'a fortune'. It's not all held by one person but many many firms, funds, people, etc etc. You can make far more money investing in anything but government debt - government debt is only really appealing because of its ultra low risk, but with ultra low risk comes ultra low return.

A current 2 year UK gilt would get you just 0.22% return!

On assets.

 

[Ilikeitblackplease]

^Not mainly.

Russian money accounts for ~50% of bank deposits, of that a significant chunk is legal. I wouldn't be surprised if the second biggest foreign investment in Cyprus is from the UK either.

I would not be like to be in the shoes of the bank managers etc.. knowing that the majority of Russian money come from the underworld. Russia to send permanent naval fleet to the Mediterranean.

 

[GAC]

lot of losses on eastern markets and currency markets this morning, well played eu and imf.

 

[Ilikeitblackplease]

lot of losses on eastern markets and currency markets this morning, well played eu and imf.

They really know how to destroy a country.

 

[scorza]

I like how the UK media are hyping this up, showing a handful of people at a cash machine in Cyprus and calling it a bank run? Where I live I'm lucky if the queue for the free cash point is that small.

Also, does anyone know if this tax applies to cash savings only, or are other forms of saving affected?

 

[Muffin`]

^Not mainly.

Russian money accounts for ~50% of bank deposits, of that a significant chunk is legal. I wouldn't be surprised if the second biggest foreign investment in Cyprus is from the UK either.

It's legal now but it wan't originally, it would appear that the EU (Germany) want something for this bailout specifically the reduction of Cyprus being an easy back door into the EuroZone for dodgy Russian money.

http://www.telegraph.co.uk/finance/...s-Cyprus-bailout-triggers-share-sell-off.html

Looks like everything took a tumble, lets see what happens if the measure is approved and if there's a run on the banks in the PIGS.

 

[GAC]

I like how the UK media are hyping this up, showing a handful of people at a cash machine in Cyprus and calling it a bank run? Where I live I'm lucky if the queue for the free cash point is that small.

Also, does anyone know if this tax applies to cash savings only, or are other forms of saving affected?

all bank accounts as theres a lot of small business owners kicking off as it will impact payments and wages.

 

[Parabellum]

If this is passed just you wait & see what will happen..

 

[deuse]

I would let the banks go bust, we could do with a change.

 

[[TW]Fox]

If this is passed just you wait & see what will happen..

Excellent insight there.

 

[bazaarboy]

If this is passed just you wait & see what will happen..

the measure isn't as bad as initially thought. Yes, it probably is illegal (freezing bank accounts, and preventing access to your own money??) but it's a necessary measure in order to obtain the bailout money. Similar measures happened elsewhere like the pension and pay cuts in Greece.

It's now emerging that shares or bonds of the same value will be issued to people, and a review by the Cypriot parliament could mean that smaller deposits or pensioners could even skip the levy altogether

 

[Dr House]

I think it would be fair not to take anything from people with less then 10k euro.

 

[GAC]

funny how they will hand hundreds of billions to greece, spain and portugul but cyprus has to bend over backwards to get 10 billion. and the eu has claimed this is a one off measure just for cyprus.

and just been mentioned on the news there maybe a 2nd bank holiday tomorrow now lol

 

[jas72]

hmm why the outcry?

Civil servants in Ireland/Spain/Greece/Latvia have had 30% of the earnings cut PERMANENTLY!

This is a one time hit at people who can afford it most ie those with 100K of savings in their account!!!!!

 

[[TW]Fox]

This is a one time hit at people who can afford it most ie those with 100K of savings in their account!!!!!

No, its everyone with money in the bank not just those with more than 100k.

 

[jas72]

No, its everyone with money in the bank not just those with more than 100k.

Oh still think its better to hit everyone 7% rather than the civil servants only for 30%

 

[[TW]Fox]

Oh still think its better to hit everyone 7% rather than the civil servants only for 30%

The two scenarios are completely different. A 30% reduction in future earnings is different to a 7% reduction in already accrued earnings. Not saying it isn't bad in its own way, but it isn't the same thing.