They’ve been given an offer they can’t refuse.
Scram doesn’t sound like such a terrible alternative, does it?
How wars start...
But not the bond holders. What gives? The depositors accounts were insured. At least split it with the bondholders. Something stinks here. Russian mafia money has become the “tax the rich” target here and the hapless Cypriots are caught in the crossfire. They can go ahead and clip the Russians but I wouldn’t want to be at the next Davos meeting. Something may go boom.
Go back to the previous currency, the Cyprus pound or Lira.
A couple of years ago in Italy, I noticed that the check was in Liras and Euros. Talking to an engineer on a train, he said he had lost roughly 50% of his buying power. Not exactly a great selling point.
I kind of liked the Lira, it was cool spending 600,000 Lira to equal about $200.00 dollars.
Cyprus has a reputation to defend and if it illegally confiscates a significant percentage of deposits...it will collapse.
Goodbye deposits, goodbye investors, goodbye banks...goodbye country.
This is the first domino in the interconnected failure of socialism.
Let it fall!