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Russia turns down Cyprus: Depositor haircut back on the table: Plan B" isn't going to work
American Thinker ^ | 03/22/2013 | Rick Moran

Posted on 03/22/2013 7:38:56 AM PDT by SeekAndFind

The Russians are apparently afraid that Cypriot banks are in such bad shape, that bailing them out by taking them over is too risky. Instead, they are taking a wait and see attitude:

Meanwhile, Cypriot efforts to clinch contribution from Russia appeared to have failed. Russia is a key player in Cyprus as Russian depositors have parked around 20 billion euros in the country.

"We will only be ready to discuss various ways of support for that state only after the EU nations and Cyprus work out a final settlement," Russian Prime Minister Dmitri Medvedev told a news conference.

Russia's finance minister, Anton Siluanov, said the Cypriots were seeking investment from Russian companies in a Cypriot state-owned firm that will manage revenue from the island's newfound offshore gas. The Russian investors, however, were not interested.

Cyprus also offered stakes in some of its banks, but there were no takers in Moscow for that, either. Siluanov also said they were not discussing providing a new loan to Cyprus as the EU has set a debt limit for Cyprus.

With the European Central Bank ready to cut off emergency funding of Cyprus banks on Monday unless the government can come up with a bailout plan, Cypriot officials are desperately trying to come up with a "Plan B" that the EU will accept.

Associated Press:

Cyprus needs to find a way to raise the 5.8 billion euros to qualify for 10 billion euros in rescue loans from other eurozone countries and the International Monetary Fund.

The plan needs approval from eurozone and IMF and that remained elusive. Eurozone officials said they had not seen all the details and would have to discuss whatever final plan Cyprus presents.

"The next few hours will determine the future of this country," said government spokesman Christos Stylianides.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs; News/Current Events
KEYWORDS: bankcrisis; cyprus; russia

1 posted on 03/22/2013 7:38:56 AM PDT by SeekAndFind
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To: SeekAndFind

Absolutely pathetic. The high and mighty EU had to beg the Russians for money, and they said no.

Can’t really gloat at the EU’s plight, since Obama put us right behind them with his economic suicide policies.


2 posted on 03/22/2013 7:41:55 AM PDT by Shadow44
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To: SeekAndFind

It’s time Cyprus was burned, and the rest of the EUSSR was set to the flame as well. From ashes shall arise the new phoenix.


3 posted on 03/22/2013 7:46:19 AM PDT by Viennacon
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To: SeekAndFind

Well, if nothing else, it’s probably going to start bank runs in every other EU country...

Once the government of Cyprus did this, they effectively killed the economy of the country for at least a generation, since there will be no depositors in the banks, there will be nothing to lend.

What better way to prove that a government can’t be trusted.

Of course, the FED is doing the very same thing to us, just in a hidden way, and much more gradually, by pumping $85 billion into the money supply every month, effectively diluting the value of your savings.

Mark


4 posted on 03/22/2013 7:50:41 AM PDT by MarkL (Do I really look like a guy with a plan?)
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To: SeekAndFind

And the DJIA is up because “the market thinks that a solution will be found.”


5 posted on 03/22/2013 7:54:29 AM PDT by John W (Viva Cristo Rey!)
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To: John W
And the DJIA is up because “the market thinks that a solution will be found.

Indeed! There is NOTHING that can stop Ben's plunge protection team, and I mean NOTHING.

Every Cypriot however, will have to sell one un-needed organ, and put up ten things for sale on ebay, with the proceeds going to the EU.
6 posted on 03/22/2013 8:02:30 AM PDT by ZX12R
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To: ZX12R

Oh, good point! The time may be right to get that replacement organ from a Cypriot!


7 posted on 03/22/2013 8:14:12 AM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: SgtHooper

Our governement is stealing our bank accounts as well. But ours does it through money printing and inflation.


8 posted on 03/22/2013 9:28:58 AM PDT by wolfman
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To: Shadow44

We are in much worse trouble than the EU when the money games are over.

Americans and the Fed led the way to the money investment and debt scams and destruction. We denied the big sucking sound as our economies and standard of living were absorbed by China.

We led the way to UN constructed global trade agreements and massive third world immigration that have sunk the west’s economies, cultures and societies, too. Our elitists are sooooo smart and clever. And Americans bought it all.


9 posted on 03/22/2013 10:27:59 AM PDT by SaraJohnson
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To: John W

No. The DOW is up because 70% of the investments are automatic and there is no other place for the money to go.


10 posted on 03/22/2013 4:09:52 PM PDT by Waywardson (I did not vote for that pro-abortionist candidate!)
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