Posted on 03/16/2013 8:42:06 PM PDT by alexmark
People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund.
The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the region’s debt crisis.
But in a major departure from established policies, the package also includes a one-off levy on the money held in bank accounts in Cyprus. Analysts have warned that making depositors take a hit threatens to undermine investors’ confidence in other weaker eurozone economies and might possibly lead to bank runs.
In return for the rescue loans Cyprus will trim its deficit, shrink its troubled banking sector, raise taxes and privatise state assets, said the Netherlands’ Jeroen Dijsselbloem, presiding over meetings of the 17-nation eurozone’s finance ministers. “The assistance is warranted to safeguard financial stability in Cyprus and the eurozone as a whole,” he said, speaking after nearly 10 hours of negotiations.
People with less than 100,000 euro (£86,000) in their Cypriot bank accounts will have to pay a one-time tax of 6.75%, those with more will lose 9.9%. The measure is expected to net 5.8 billion euro (£5bn) in additional revenues, Mr Dijsselbloem said, greatly reducing the country’s financing need.
(Excerpt) Read more at tinyurl.com ...
The beginning of the end of our phony stock market as the Euro begins to crash...
Half of the money in Cyprus banks is kept by non Cypriots!
Slick way to take money from people who can never ever vote against the people who stole it
Now, what bank in the world is a true bank haven safe from the IMF and the Germans and the Chinese? The bank of mattress?
Your card has the limit.
But, in this case, the ATMs have already run out of money. Most banks that were open Saturday in Cyprus closed early. So essentially there has already been a “bank run,” but it was conveniently limited by the ATMs capacity.
Plus the banks are closed on Monday per the article.
Russian billionaires are people, too
If the money was not there being laundered (in whihc case there would be a klegal proceeding to determine guilt) then there is no more right of a govt directive to seize it than to seize anyone’s money
But what are “rights” in this day and age? What the govt decides you should have based on your socioecomnic class and the way you vote?
Imagine the Cypriot banking system when every penny of Russian money (half the band deposits) is pulled out. Good luck with funding those Cypriot pensions. Maybe that’s why the Germans wanted to take 40%!!
Will be interesting next week to see if foreign deposits stay in banks of Greece Spain Italy and other EU countries also living loan to loan.
Will also be interesting to see what the Russians (the energy controlling billionaire “oligarchs”) charge for their gas in that pipeline to Euroep to keep the “green” Germans from freezing in the dark when their windmills sit silent
Notice how they call it a tax. It’s not a tax. It’s confiscation.
I fully expect the marxist a$$hole$ in Washington to try something like this, and they would call it a tax. The low-information voters with their heads up their a$$e$ would say, with the spit drooling from their lips “uh duh new tax duh uh”
Way to spark a bank run.
Yeah suprised to learn when I switched to Wells Fargo there is a 300 atm limit.
-———it’s a TAKEN not a Tax-——
While the ramifications and fear might produce unintended consequences the action seems reasonable to me. The IMF et al have charged the depositors a fee for banking services. The fee may be involuntary and after the fact but it is both reasonable and a good solution to the problem.
The alternative is loss of everything.
Euro zone ministers struck a deal on Saturday to hand Cyprus a bailout worth 10 bln euros ($13 bln) to stave off bankruptcy. Under the programme, the island’s debt should fall to 100% of economic output by 2020, much more sustainable from the previous estimates of 120% and 140%.
Here are the outlines of the financial package:
- Nicosia will impose a 9.9% one-off levy on deposits above 100,000 euros in Cypriot banks and a tax of 6.75% on smaller deposits from March 19. The levy will generate 5.8 bln euros. There is no mention of a levy on current accounts.
Depositors will be compensated by equity in the banks. A similar fate may also be reserved for some 2 bln euros worth of bond holders who had been duped by Bank of Cyprus and Cyprus Popular Laiki Bank to buy the unsecured instruments.
There will also be a tax on interest that the deposits generate. From the current 15% it will probably rise to 30%.
- Cyprus has agreed to increase its nominal corporate tax rate by 2.5 percentage points to 12.5%, which could bring in up to 200 mln euros a year. However, this could also turn out to be a double-edged sword, as higher rates could push companies beyond Cyprus shores, resulting in lower revenues for state coffers.
- The IMF is expected to contribute to the rescue package, but the amount is still to be determined. It has also not said when it will cointribute the funds.
- Russia will likely help finance the programme by extending a 2.5 bln euro loan already made to Cyprus by five years to 2021 and reducing the interest rate, which is now at 4.5%.
- Cyprus may be required to privatise the Cypriot telecoms company Cyta, the electricity company EAC and the ports authority, which combined have assets worth 4 bln euros. Four more government owned services may also be privatised.
- Cyprus will have to downsize its banking sector, reducing it to the EU average by 2018. The size of the banking sector in Cyprus is more than eight times the size of the economy, compared to around 3.5 times in the EU.
I need to check that out.
——For global bankers, a paper currency is not important——
For some time now, currency is mostly a factor. That is a constant in an equation that adjusts the values of electronic ledger entries. Of course the constant is not really constant, it varies constantly. The variation is easy to track however and the ledger entries can be easily adjusted to accommodate the variability.
Money is not currency. Money is the value at a specific instant of an electronic ledger entry. All the money in the world with the exception of say, some tribes in New Guinea, is ultimately a zap in a computer.
The SDR’s of which you post are essentially special permits to access the electronic ledger directly to make the zaps necessary to facilitate trade.
Thanks for the heads up on the USPS phoney link.
What you said about the Russians and the Communist Hell...Czar Nicholas wasn’t interested in loans from the Rothschilds, so that financier gave money in support of the Communists in Russia.
Lenin rued the day he became indebted to the Rothschilds. Much evil in our present world’s position can be traced to that family’s activities in the late 19th and early 20th centuries.
Soros is laughing.
I didn’t save the links, but there are articles around stating that the Russian oligarchs were forewarned and already have taken their funds out of Cyprus.
Fine, not communist. At least they’re socialists, like I said. Or leftists, failing that. Whatever they are, they want to use the power of government—not merely the government we have now, but more government, new government, of ever bigger size and scope, pointing ultimately toward a one world state—to among other things maintain and grow their wealth.
We tend not to think of the super-rich, as you put it, as leftist. Or at least only to think of their bratty offspring as such. Of course, it’s been a long, long time since any Rockefeller, Morgan, Ford (a sad name to add to the list, considering how hard he fought to remain independent of the Rockefeller and Morgan cabals), etc. was enterprising and self-sufficient. But there’s no other term for what they are, except various specific kinds of socialism, like syndicalism and corporatism. You are free to deny they’re communists, and argue the socialists are their dupes. But when it comes to the end result you must categorize it somehow. And whether dreamer up by a utopian layabout red diaper baby or the board of trustees to a world famous tax-exempt endowment, there isn’t anything to Gallo what you describe as “a world of peace through centralized money control” but socialist.
This is not the Wall Street free marketeers have been known to defend. This is not families of super-rich weilding their private powers which uninitiated commies want to bring in the power of the state to regulate. This is the state, as run by people allied with, influenced by, and funded by the super-rich. This is what used to be called “rent-seeking.” Private wealth influencing government to bar entry by competition and secure for themselves an everlasting place of wealth and influence.
This is the ideology either guiding or guided by that sort of position, and the export of it, especially its purebred Anglo-Saxon strain, across the entire globe. This is the Corporate State. This is Mussolini’s syndicalism, only internationalist. This is Hillaire Belloc’s Servile State. This is Lenin’s Last Stage of Capitalism. This is what everyone accused Naziism of being, but wasn’t quite. This is leftwing Big Business.
It is a confusing picture, would you agree?
One thing that startled me about Bill Still’s documentary on The Money Masters, was something Still mentioned about J.P.Morgan.
I know I always thought of John Pierpont Morgan as one of the wealthiest men in the USA. But when Morgan died, his will was surprising in that he was not fantastically wealthy. He only left about $1,500,000. It turned out that Morgan was an agent for the Rothschild family of England, and the rest of the money Morgan wielded belonged to them.
“Hey, what are you doing with my money in your house, Fred?!?”
"Well, ya see, Fred hasn't worked in the last 15 years, but, but that's no reason for Fred not to have a nice house like yours, TC."
"So, just calm down and go home and watch another episode of American Idol, TC, and hug your family, and be thankful we know how to handle your money better'n you do, TC."
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