Eurozone will collapse...

[Sirius]

Cyprus Bailout: Savers Lose Money In EU Deal

http://news.sky.com/story/1065567/cy...ney-in-eu-deal

Anyone with savings in a Cyprus bank will lose some of their money under a ground-breaking bailout deal agreed by European finance ministers.

Bank customers will pay a levy of up to 9.9% on their savings, a charge which will raise nearly 6bn euros (£5.1bn)

More than a third - 37% - of cash held in the Cypriot banking system belongs to non-residents and the country has a large British ex-pat community.

Queues of people gathered at cash machines on the island on Saturday as they tried to withdraw their money ahead of the move.

And the country's cooperative banks had to shut their doors after seeing a rush of savers keen to protect their money.

http://www.bbc.co.uk/news/world-europe-21814325

'Robbery'

People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said.

If i was in Cyprus i would have by now withdrawn every penny i had in a bank or building society. I am so glad we are not part of the Euro.

What scares me however is that if the idiots in Labour get in at the next election they will go running to the EU and sign us up so they can grab a bailout to fund there crazy spending sprees.

[Osem]

The rules are well and truly being rewritten as we watch helplessly from the sidelines. This sort of thing is quite outrageous. In don't suppose people will be queueing up to save via Cypriot banks after this so how's that going to help their economy and what message does it send to savers in countries like Spain, Portugal and even Italy? It's almost as if the Eurocrats are hell bent on creating turmoil in order to justify ever more extreme measures in their pursuit of their aims.

[Sirius]

Looks like the EU are hated in Cyprus now. Way to make friends and influence people.

http://www.bbc.co.uk/news/world-europe-21813754

Cyprus bailout: Man threatens bank with bulldozer

The unelected EU bureaucrats will end up starting the biggest fallout Europe has seen in years with there arrogance.

Cyprus could always turn down the 10 Billion Euro bail out....

Yup. These countries can't have it both ways and have the bailout with no conditions attached. It was the same with the level of animosity towards Germany because they imposed strict conditions on the Greek Bailout to ensure they didn't squander it all away on trying to keep up their spending plans for a few more months. I think 10% of savings is scandalous of course but then so is the fact they got into that position in the first place.

Originally Posted by Hugh

Cyprus could always turn down the 10 Billion Euro bail out....

... Or leave the Euro and devalue. That way domestic savers take a somewhat less direct hit.

[Osem]

At least by leaving the Euro their future will be more in their own hands.

That's worked well for them so far....

[gooner4life]

The thing is before joining the EU The Cypriot economy was fantastic - The CY Pound was almost twice as valuable as Sterling - how they managed to screw up so bad i'll never know.

[Sirius]

Originally Posted by gooner4life

The thing is before joining the EU The Cypriot economy was fantastic - The CY Pound was almost twice as valuable as Sterling - how they managed to screw up so bad i'll never know.

I think you will find they were dragged in to the Greek issue

Cyprus is the fifth country after Greece, the Republic of Ireland, Portugal and Spain to turn to the eurozone for financial help during the region's debt crisis.
The country has been in financial difficulties since the collapse of the Greek economy, where Cypriot banks had huge investments.
It appears that the heavy presence of Russian money in Cypriot banks was a factor in imposing the levy.

http://www.bbc.co.uk/news/world-europe-21814325

[nomadking]

It's possible that Cyprus has been seen as a special case.

It appears that the heavy presence of Russian money in Cypriot banks was a factor in imposing the levy.
...
According to Reuters news agency, almost half of the depositors in Cyprus are believed to be non-resident Russians.

This 'wealth tax' will have to come from the capital that the banks have to set aside. Unless the banks have been sitting on excessive amounts of non-invested cash, then the cash taken will have to be replaced. Then there is what is going to happen on Tuesday, when large numbers of people withdraw their money.

[TheDaddy]

Originally Posted by Sirius

Looks like the EU are hated in Cyprus now. Way to make friends and influence people.

Short memories some people have, last time I was in Cyprus everywhere you looked there was a sign for some road or building that said it had been funded by the EU.

[Sirius]

It has just been on Sky news that British soldiers based in Cyprus are at present going to be made to pay the 6.7% tax on any money they have in the bank as well. That includes there savings.

http://www.telegraph.co.uk/finance/f...s-savings.html

Cyprus bail-out risks UK troops’ savings
Thousands of British savers, including armed forces personnel , are to be hit by a eurozone tax on Cypriot banks after the island’s £8.7bn bail-out.

I so hate the EU and everything it stands for. In fact the EU is starting to look like Russia and its control freakery

[Sirius]

Cyprus bailout: Parliament postpones debate

Looks like they are getting worried about the reaction of the people

http://www.bbc.co.uk/news/world-europe-21819990

Under its terms, people in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%.

Those with sums over that threshold will pay 9.9% in tax.

Depositors will be compensated with the equivalent amount in shares in their banks.

On Saturday President Nicos Anastasiades admitted the deal was "painful" but said it was necessary to avoid a "disorderly bankruptcy".

But opposition leaders and savers - including many non-Cypriots - have expressed shock and anger at the proposal.

The deal requires the approval of parliament.

http://news.sky.com/story/1065753/cy...s-raid-bailout

Cyprus's parliament has postponed its decision on whether savers must pay a levy on bank deposits under terms for an international bailout to avert bankruptcy.

The vote which was due to take place later this afternoon has been pushed back to Monday.

The eurozone demand that savers pay up to 10% of deposits as a condition for the 10bn euro (£8.6bn) bailout has drawn criticism and anger in the eastern Mediterranean island.

Queues of people gathered at its cash machines on Saturday as they tried to withdraw their money ahead of the move

I can see this getting very ugly if they do raid bank accounts and remember this would include the accounts of British servicemen stationed in Cyprus on behalf of the UN. It would also mark the first time that the 17 eurozone countries and the IMF have raided peoples' savings and bank accounts to finance a bailout, something that i find disturbing

The UK will now compensate British Citizens that lose out. Just breaking...