[Bon mots]

From what I’ve read, the 20% confiscation will be made to those who have over 100,000 € in their account at the Bank of Cyprus. The second largest bank (Popular Bank) will be split into 2 (good assets and bad assets). What I’m not clear about is what happens to the accounts in Popular bank that were over 100,000 €? Is it all gone?

Economist Fiona Mullen said she doubted there would be much leeway from the Eurogroup.

"Estimates on how much you would need to haircut changes from minute to minute but, if we go with (German Finance Minister Wolfgang) Schaueble's number last week, it was 40%. That probably just increased to 50% because of the recent events," she said.

SOURCE: http://www.france24.com/en/20130323-pain-mounts-big-depositors-two-main-cyprus-banks

[Cowboy Bob]

I can’t see Cyprus recovering from this. OK, they get a bail out. Most banks “survive.” People will try to withdraw money. There will be controls on the amount taken out, etc. but will there e any money coming in? Russian money will go elsewhere. British pensioners will now decide to move elsewhere. Standard of living in Cyprus is about to take a big hit.