Posted on 03/18/2013 4:14:31 AM PDT by cunning_fish
MOSCOW (Reuters) - Russian President Vladimir Putin criticized on Monday a levy imposed by the European Union on bank deposits in Cyprus as unfair and setting a dangerous precedent.
"While assessing the proposed additional levy on bank accounts in Cyprus, Putin said that such a decision, should it be made, would be unfair, unprofessional and dangerous," Kremlin spokesman Dmitry Peskov told journalists.
Russian citizens account for the majority of the billions of euros held in Cypriot banks by foreign depositors, and Russian banks are heavily exposed to the island as a favored offshore centre for big business.
The levy, imposed as part of a 10 billion euro bailout, sparked panic among Cypriots over the weekend and hit Russian and other European financial markets on Monday.
As the Cyprus parliament prepares to vote on the measure on Monday, the government in Nicosia was working on a plan to soften the blow for smaller savers.
Russian Deputy Finance Minister Sergei Shatalov earlier said the tax would be acceptable if it was levied only on interest earned by savers.
There are almost 70 billion euros in deposits held in Cyprus. A little less than half that is held by non-residents, most believed to be Russian.
At the end of last year, Russian banks had around $12 billion on deposits with Cypriot banks and corporate deposits accounted for another $19 billion, according to Moody's credit-rating agency.
(Excerpt) Read more at news.yahoo.com ...
“There are almost 70 billion euros in deposits held in Cyprus. A little less than half that is held by non-residents, most believed to be Russian.”
Guess its all about who’s ox is being gored......
Precisely. Here it will be the “greedy geezer’s” hoards that will come under attack.
Couldn’t happen to a nicer bunch of guys
Gee, big surprise.
Russians or no Russians, this would set a precedent that will destroy faith in banks and eventually destroy the banking system.
Let’s watch for Putin’s next move. This levy is seen as an anti-Russia slap by the EU. Putin will now slap back, probably in the gold markets.
IIRC the last time he got in a spat with the EU he squeezed their natural gas supplies in the middle of winter.
Once again, Putin beats Little Obama Bo Peep to the punch. The 0-boy apparently couldn’t bring himself to protest this obviously destructive move.
the Chinese have a huge stake in the gold markets- so what would the Russians do?
What safe haven will wealth go to when banks subject to deposit grabs ordered by the IMF (and Germans) aren’t trusted anymore?
Some reports say the Germans wanted to take 40% of the depositors’ money!
For once Ivan is on the right side. Just for the wrong reasons.
Three words...”Warm weather port.”
El Bozo has succeeded in making the USA a third-rate power when Putin can strut on the world’s stage and be taken seriously again. This was part of that “change” he ran on in ‘08.
The “New World Order”, Euro to tax Cyprus bank accounts at 10%! If they get away with this it will set precedent in other countries. Can it happen here? We know that Homeland Security purchased over 1 billion rounds of ammo, we have a new push for gun control, Homeland security purchases armored vehicles and drones for stateside duty, then there are the rumors that military men have been asked if they will fire on American citizens. Keep an eye on Cyprus!
He can't condemn it because when he does it he'll be crucified by the media given a pass by the media. Nevermind.
Russians or no Russians, this would set a precedent that will destroy faith in banks and eventually destroy the banking system.
That would be a good thing. We have already lost faith in burglars and other common thieves.
So clarify something for me...I have a deposit in a Cyprus bank and what is there is reflective of savings after I have paid my taxes on it. I may or may not be a Cypriot citizen but still, the EU outside of the Country just wants to take 10 per cent of what I have saved...just like that?
I think, in order to be fair...all savers in all EU countries(richer or poorer should have to have 10 per cent of their savings taken.(..better yet...just dissolve the EU!}
After all the EU is supposed to be one great big supranational/financial entity anyway with richer and poorer countries. When they formed the EU they all knew some areas were worse off then others but the whole purpose was to unite Europe. So, if any levies are to be laid, then every saver in the whole of the EU needs to have a portion of their savings taken....it’s only “fair”...(sarcasm on)
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