Some Cyprus Savers Could Lose A Quarter Of Their Bank Deposits In New Deal

Business Insider ^ | 03/23/2013 | Jo Adetunji, The Guardian

[SeekAndFind]

Savers in Cyprus could face losing one-quarter of their bank deposits under new proposals being discussed by the government as ministers flew to Brussels to salvage a European bailout.

The new bank levy would only apply to people with more than €100,000 (£85,260) in their accounts, according to the finance minister, Michael Sarris, who also said that significant progress had been made in talks with European officials.

President Nicos Anastasiades travelled to Brussels to work out an alternative plan to raise funds that would allow the country to qualify for an international bailout. Cyprus must raise €5.8bn (£4.9bn) before Monday to qualify for the €10bn EU bailout it needs to prevent the collapse of its banks and a potential departure from the eurozone.

The idea of raising money through a one-off levy on bank deposits was criticised in Cyprus, Russia and elsewhere and was unanimously rejected by the Cypriot parliament earlier this week, but is being reconsidered after negotiations with Russia to find alternative finance did not achieve a result.

On Friday, the Cypriot parliament passed nine bills, including three that would see ailing banks restructured, starting with Laiki, Cyprus's second-largest bank, a "national solidarity fund" and capital controls that would prevent large withdrawals from the country. A decision on the controversial bank savings levy and how it would be applied is due on Saturday.

Other Cypriot politcians discussed a smaller bank levy of 1% which would be aplied to all accounts. The debate is divided between those that want the levy to be borne only by the wealthy which includes a high percentage of Russians who hold €30bn in Cypriot banks.

[patton]

“not bailing out Russian billionaires “

Letting someone keep their own money is only a bailout to a democrat. You know, they believe all money belongs to them, they are bailing you out by letting you keep some...

And, it is a straw man - $100 k may seem like a lot of money, but many farmers and the like keep that much in the bank as a matter of course - they need it for operating costs.

Are they russian billionairs?

[sergeantdave]

‘The haircut has been lowered to a frontal lobotomy.”

That’s the funniest comment on banking that I’ve seen.

LOL!

[BobL]

Thanks. I’ve been getting the feeling that we’re being manipulated (again) by the media. The Russians have EVERY REASON not to trust their own banks, given their recent history. As to whether there are crooks putting money into Cypress...probably, as to whether honest Russians are doing the same...definitely. So, what did they do wrong?