Posted on 03/26/2013 2:47:10 AM PDT by LiveFreeOrDie2001
NICOSIA (Reuters) - Banks in Cyprus will remain closed until Thursday, and even then subject to capital controls to prevent a run on deposits, after a European Union bailout that the country's president assured his people was in their best interests.
After returning from fraught negotiations in Brussels, President Nicos Anastasiades said late on Monday the 10-billion euro ($13 billion) rescue plan agreed there in the early hours of the morning was "painful" but essential to avoid economic meltdown.
He agreed to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's outsize financial sector ran into trouble when its investments in neighboring Greece went sour.
European leaders said a chaotic national bankruptcy that might have forced Cyprus from the euro and upset Europe's economy was averted - though investors in other European banks are alarmed by the precedent of losses for depositors in Cyprus.
"The agreement we reached is difficult but, under the circumstances, the best that we could achieve," Anastasiades said in a televised address to the nation on Monday evening.
"We leave behind the uncertainty and anxiety that we all lived through over the last few months and we look forward now to the future with optimism," he told compatriots who face an immediate, deep recession and years of hardship unlikely to be milder than those experienced by Irish, Greeks and Portuguese.
Many Cypriots say they felt anything but reassured by the bailout deal, however, and are expected to besiege banks as soon as they reopen after a shutdown that began over a week ago.
(Excerpt) Read more at finance.yahoo.com ...
Government wants its run on the deposits first.
Either way (bank open as scheduled or delay even later) hard times [yes, riot(s)] are coming.
If Cyprus keeps the banks closed, the run on the banks will start elsewhere. Spain, Portugal, Italy, Greece, Ireland. Take your pick:
http://www.freerepublic.com/focus/f-news/3000797/posts
Yep, plus it takes time to shift money back into Cyprus.
This is the “Settlement Time”.....
The Russian money is long gone. The failed “bailout” meetings with the Russians last week was a ruse to facilitate the transfer of the money.
Putin would never let Russian money be trapped by lesbian idiots Merkel and LaGarde.
Controlled bank run, Their branches in europe have remained open, European depositors along with Ivan have likely already withdrawn their funds.
If I hide under a blanket, you can’t see me.
I’m waiting to see the smoke and fires to start rising from Cypriot banks and public buildings. Will they now open on Thursday or will there be another postponement until next week? The pressure is building.
They won’t be holding them off for much longer if stores can’t buy products, people can’t buy food or gas, etc...
I don’t see how people survive with no access to their money. No doubt credit cards & checks are worthless in stores - cash is king.
So, how do people feed themselves & obtain the necessities?
I’ve seen numerous articles on the bank lockouts, but nothing on the effects on the people.
Merkel and LaGarde are idiots but lezbos, too?
He agreed to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's outsize financial sector ran into trouble when its investments in neighboring Greece went sour.
I utterly fail to understand how the outright theft of depositors' money can have anything but a economy killing effect. How is that considered a rescue?
The real pain here is that the socialists, even when confronted with the collapse of an untenable system, are doing everything they can to avoid addressing the root of the problem. As long as they won't ditch socialist redistribution schemes, the economy will collapse and won't be rescuable.
Cypress is showing socialist collapse on a small scale. Large scale, it may take longer, but it is still inevitable. "Too big to fail" does not exist.
How do you save a bank by ignoring the reason for putting money in a bank.
What fool would ever place savings in a bank that steals them.
Of course there will be a run. I am surprised that banks in America haven’t had a run on them yet.
LaGarde I believe is a tranny, look at pictures of her, read her tweets.
She wears scarves around her neck most of the time concealing an Adam’s apple that’s larger than mine.
Merkel - just one look, thats all it took.
you are wise, yoda
the Russians’ relatively mild acceptance suggests deals were made with the people who matter, and pensioners and the unpolitically connected Russians are gonna get a Merkel buzz cut
>>> What fool would ever place savings in a bank that steals them.
You’d be surprised.
Wonder if this could be an opportunity for a new banking model. No interest payment on insured deposits, in fact you pay 0.1% ( or similar) per year and the Bank DOES NOT LEND OUT YOUR DEPOSITS. They actually BANK the money guaranteeing no loses.
Not monster profits. Like the current thievery system, but if you attracted huge deposits for safety........
It’s still theft, even if they make it complicated to understand.
That’s what they will do here. Mix it up with big words that the idiot public can’t understand, and it will pass. The low information voters won’t know what happened and will blame it on Republicans like the media tells them to.
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