Cyprus Banks and the E.U.

[rabbit]

CHARMING!

So it seems that customers of Cyprus banks will automatically be taxed (one off?) on any money they have in their current or savings accounts. This is to satisfy the EU and international lenders who are subsidising the Cypriot economy.

http://news.uk.msn.com/nervous-cypriots-hit-cash-machines-1

Apparantly our Military personnel serving over there will be protected from any loss of money.

It raises the spectre of a bank run though.

At least Mr. Osborne (in his budget) can now switch to a defensive stance blaming international economics, instead of harping on all the time about the enormous problem left by the last Labour government.

[Stig of the Seaton Dump]

Would they ever do this in the UK ?

Might only be a fraction of a percent chance but is that enough savers to put their money back under the mattress.

[mk1]

CHARMING!

So it seems that customers of Cyprus banks will automatically be taxed (one off?) on any money they have in their current or savings accounts. This is to satisfy the EU and international lenders who are subsidising the Cypriot economy.

If the alternative is to let the bank go bust and lose all your money then they got a good deal.

It appears the banks (in Cyprus) were offering deals that they could not sustain. In effect the  savers saw only the rewards.
Is it right that you and I should compensate greedy people?
There is also the factor Cyprus was so dodgy (in regulation) that the place was floating on Russian Mafia money.
Should you or I be in the business of helping them out?


It seems 'Welfare for Bankers' is a growth industry!

[mk1]

Who gave these NON - elected, NON - accountable bunch of bureaucrats the right to dip into the bank accounts of bank customers, in Cyprus, and just help themselves to whatever they want, in order to shore up their lousy, politically inspired, common currency?

There is no cure for stupidity.
Cyprus is bust and is given a handout.
The lender thinks some of the pain should be shared by the people who took the profits in the 'good times'.
The majority these people are Russian criminals laundering stolen money.
Perhaps UKIP is  recruiting in Moscow and Novosibirsk?


Vote UKIP comrades

U  Keep Illegal   Profits.

Sadly, there are a couple of regular HTH contributors who will defend this malignant organisation no matter what they do.

Drone, drone, drone......................................who won WW2.......................Empire.................keep Rhodesia White.................immigrants.............climate change .................Moslems .............

[rabbit]

I get the point about the Russians. But the tax imposition is not specifically targeting them. It is aimed at anyone in Cyprus who has a bank account.

There again. if a Mafia type situation is thought to exist then perhaps politicians should be wary of causing offence.

[mk1]

Rabbit my old mate please understand that pro EU fanatics like MK1 will never let the facts get in the way when it comes to defending the Soviet Union MK11 - the EU.

Not bring able to hang around all day in the Pink with your alky mates has left  you with far too much time on your  hands.  Stop  bothering decent folks.

If anyone was ever in doubt that we need to exit the EU ASAP then this example of their dangerous ethos should sound the alarm bell - ever louder.

Yes it is a pity there is no single party you could vote for to leave the EU............
Hang on, UKIP fought the last General Election with a promise to leave the EU.
Remind me how many seats you got......

I don't often agree with Cameron but  his 'fruitcakes, loonies and closet racists' remark was spot on.

[rabbit]

So the Cyprus Government have rejected the EU/IMF handout. Will be one to watch over the next few days (our own Budget is tomorrow)

http://www.bbc.co.uk/news/world-europe-21842966

[Lord Elpus]

Would they ever do this in the UK ?

Might only be a fraction of a percent chance but is that enough savers to put their money back under the mattress.

The reality is, with inflation above bank rate and over £370 billion extra pounds having being printed since Cameron came to power, we have all have well over 10% of our wealth stolen by the state.

Osbourne did it by stealth.  Cyprus is taking the direct route.

[whatabouthisthen]

Just a little clarification. It is not the EU that is dipping into Cypriot bank accounts. Cyprus went to the EU for a loan and were offered terms, just as you would be if you wanted a loan. They can either accept or refuse or go elsewhere - the options they are currently considering. If Cyprus accepts the EU loan it will be the Cypriot Government that applies the tax not the EU.
Consider Lord Elphus statement. It is correct as successive UK Governments have raided our pension funds and manipulated the bank rate to their advantage and to our cost. The current low bank rate is effectively a tax on savings. So, what is the difference between what is being offered to the Cypriots than that which is imposed on us?

[rabbit]

It is the end result that counts.

Imagine if it happened here.

All the banks are closed for business until Tuesday, and it is difficult to withdraw cash from cash machines.

Some outlets will not accept cheques and cash is king.

Presumably businesses and finacial institutions are unable to use electronic transfers to move money in/out of the banks.

What happens when the banks reopen for business. Will there be a big bank run?

If so what happens then?

[whatabouthisthen]

Re rabbit, it did happen here. Don't you remember Northern Rock? I was in Spain at the time and was blocked from accessing NR over the Internet. It was still blocked when we returned to the UK. Eventually over the phone I did manage to transfer most of our savings. Mr Darling saved the situation from total failure although he could have acted sooner.

Many people in the NE lost ALL their shares in NR with no recompense. Still no sign of any appearing.

Thankfully no one had to test the bank guarantee but we still don't know whether or not it is a guarantee.

[rabbit]

Well the loan from the IMF has been sorted, the price of which will have long lasting effects upon the island.

The Turkish side of the island must be looking a little warily across the border, seeing that all the financial problems of the Greek side started after they changed over to the Euro currency in 2008.

Perhaps all a coincidence and they would have run into trouble even if they kept the Cypriot Pound.

Anyone going to Cyprus soon?