Wow. EU steals 10% of bank deposits in exchange for bailout

Discussion in 'Economics' started by Grandluxe, Mar 16, 2013.

  1. Cyprus eurozone bailout prompts anger as savers hand over 10% levy
    Angry Cypriots try in vain to withdraw savings as eurozone bailout terms break taboo of hitting bank depositors

    Reuters, Saturday 16 March 2013 11.23 GMT

    European finance ministers have agreed an £8.7bn bailout for Cyprus which includes all Cypriot bank customers handing over up to 10% of their savings.

    "I wish I was not the minister to do this," the Cypriot finance minister, Michael Sarris, said after 10 hours of late-night talks in which eurozone finance ministers agreed the package. "Much more money could have been lost in a bankruptcy of the banking system or indeed of the country." Without a rescue, Cyprus would default and threaten to unravel investor confidence in the eurozone, a renewed confidence fostered by the European Central Bank's promise last year to do whatever it takes to support the euro.

    However, on Cyprus, initial incredulity at the decision gave way to anger. Co-op credit societies, normally open on Saturdays, were shut for business in the coastal city of Larnaca as depositors started queuing early in the morning to withdraw their cash.

    "I'm extremely angry. I worked years and years to get it together and now I am losing it on the say-so of the Dutch and the Germans," said British-Cypriot Andy Georgiou, 54, who returned to Cyprus in mid-2012 with his savings.

    "They call Sicily the island of the mafia. It's not Sicily, it's Cyprus. This is theft, pure and simple," said a pensioner.

    Cypriots with savings of under €100,000 will pay a one-off levy of 6.75%, which rises to 9.9% for those with larger deposits. The levy on bank deposits will come into force on Tuesday, after a bank holiday on Monday. Cyprus will take immediate steps to prevent electronic money transfers over the weekend.

    Nobody's money is safe. European socialism is great huh?
  2. kashirin


    most money will be taken from offshore accounts which held by Russian oligarchs who stole those money from Russian people,

    so it's not that bad
  3. Leftists in America will eventually get around to the same thing here... and that will just be for starters. Odumbo will see to it.
  4. Bob111


    yeah...but you have think a little bit wider about it.. see wise man quote below. how would you feel,if your trading or saving or whatever account get's 10% cut overnight? specially savings,that was already been taxed to death(in case of US or EU lawful citizens).

    100%. that some scary s** cyprys is pulling off. and eventually-it will back fire to them big time. no one in his right mind would ever use their banks.what a bunch of dumbasses. it's like cutting it's own balls.
    imagine same s*** on bahamas or caymans
  5. EU is telegraphing that nobody is safe. If I were Spanish,Italian or Greek, I would quickly take my money out and hide it under the bed. Zero confidence in the system, no one knows what can happen.
  6. Bob111


  7. I thought your thread title was a joke. Surreal. Your link is brkn so here it is:
  8. Wow a 10% haircut to your money with no say.
  9. pma


  10. Bob111



    a lot of companies are located on Cyprus,cause of their low and simple flat corp tax(same 10% i think). just curious ,if it's only for 'retail' or everyone has to pay regardless,corps\trusts included?
    #10     Mar 16, 2013