Bailout of Cyprus to cost depositors 10% immediately

Hearing this morning the Cypriot banks aren't opening now until next week now in a futile attempt to stave of the inevitable bank runs!
Germany's finance minister, Wolfgang Schaeuble said major Cypriot banks were "insolvent if there are no emergency funds." Makes me wonder if they will reopen at all unless the Cypriot Government agrees to the terms of the OBR. If I was the president of Cypress, I would be reading up about now on the Icelandic play book for situations like this.

 

A Cypriot MP interviewed on UK Channel 4 news estimates Cyprus will have to switch back to printing Cyprus Pounds "in five or six days" (and press Print in a new post-Euro treasury)

[youtube]http://www.youtube.com/watch?v=GuEtYXkkOiU[/youtube]

11 minute video, the MP starts about 5.50 and makes the Pounds statement starting about 10:20.

Paxman: "You'll just start printing money, right?"

MP: "That's right."

and later

MP: "That will be the end of Cyprus in the Eurozone."

I wonder if the markets will notice this interview??

 

This is really weird! Cyprus teetering on the edge of default and the MSM is not even mentioning it or if it is, very little.
Gold and Silver treading water, Stocks rising. Are the markets SO manipulated and they can even stifle this?

 

MSM is covering it... I know people that aren't stackers that have taken notice of this tiny country's predicament.

However, the recent turn of events in Canberra has taken most people's attention span...

 

Maybe they should switch to the ruble.

 

Sigh. As my Father in law used to say "Only one man went into Parliament with good intentions - GUY FAWKES!"

 

Yep distraction after distraction, msm is covering it but only what they want too.
As soon as canberra started today (yawn) you knew it was distraction.

 

FYI, I heard on the ABC News radio this morning an interview from the streets of Cyprus.

Some people were still able to get cash out of ATMs... 1 chap got 1000 Euro's out but when he tried to get more it told him the machine was empty.

Elsewhere, a coffee shop owner said he could still take electronic credit card debits....but was unable to unlock those credits out of the bank to pay his staff or suppliers.

 

BIG NEWS: The European Central Bank has announced that it has agreed to continue supplying emergency funding to Cyprus's banks until next Monday.

But if the bailout hasn't been agreed by then, the ECB would step away. It's quite an ultimatum.

Here's the statement:

The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013

Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.

That sets Nicosia a clear deadline -- find 6bn by next week, in a way that satisfies the IMF and the European Union, or your banks collapse

http://www.guardian.co.uk/business/2013/mar/21/eurozone-crisis-cyprus-bailout-plan-b

<Insert popcorn eating smiley>

 

We really do need a popcorn eating smiley. How about it GP?

 

Profit motive trumps emotions. Entrepreneurs and businesses that can make a buck will, regardless of what banks got screwed.

[youtube]http://www.youtube.com/watch?v=jKGjOE_7bYI[/youtube]

 

be nice to have gif's
i can see this being used alot

www.smileyvault.com/albums/userpics/10172/smiley-face-popcorn.gif

 

[youtube]http://www.youtube.com/watch?v=LWoOMP6C7Vc[/youtube]

 

So the lastest seems to be that Cyprus will try to create an investment solidarity fund which will hold state and church assets that private and business investors can invest in.

The second largest bank in Cyprus Laiki Bank will be restructured and split into good and bad assets. Those with less than 100k in the bank will be protected but those with more than 100k will most likely lose a lot more than the 10% initially proposed. Around 40%

A 260 euro withdrawal limit per day has been placed on Laiki customers and any deal with the Russians seems to have fallen through. The parliament is supposed to vote on the new measures and imposing captial controls tonight euro time.

 

This is the list of capital controls that the Cypriot government are trying to vote into law


*Restrictions in daily withdrawals
*Ban on premature termination of time savings deposits
*Compulsory renewal of all time savings deposits upon maturity
*Conversion of current accounts to time deposits
*Ban or restrictions on non cash transactions
*Restrictions on use of debit, credit or prepaid debit cards
*Ban or restriction on cashing in checks
*Restrictions on domestic interbank transfers or transfers within the same bank
*Restrictions on the interactions/transactions of the public with credit institutions
*Restrictions on movements of capital, payments, transfers
*Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety

Welcome to the first taste of the new world

 

"Any other measure " that leaves it wide open to make it up as they go along

 

The Troika have rejected Cyprus' national security fund as it involved nationalising pension funds. The options are quickly running out with the deposit levy the only option left which the Cypriot government having already said they won't consider. It's down to a good old Mexican standoff

 

They have to default.

Watching this is like watching a drug counsellor try to reason with a heroin addict that's convinced MORE poison will make them feel better and that they could not live without it, (even though they clearly did).

Cyprus existed happily before the Euro.... it can again. All it has to do is put the needle down and default back to it's own currency.

 

It's come down to a deposit levy that will protect small deposits under 100k with about a 15% haircut for those above or default. That's it. It will be voted on later this evening most likely after european markets have closed for the day. I need moar popcorn