Cyprus Deal Reached 40% Bailout Tax Imposed On Accounts over 100,000

Cyprus reached a deal early Monday to receive funds from its European and international lenders to prop up its ailing banking sector and prevent its exit from the euro zone.

Reuters reported that the proposed agreement would include the closure of the country's second-largest lender, Popular Bank of Cyprus or "Laiki Bank," with deposits under 100,000 to be shifted to the larger Bank of Cyprus. Deposits over 100,000 at Laiki would be frozen and used to pay off debts, it said. Separately, Agence France-Presse reported that, as part of the agreement, the country will impose a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros in their accounts. The proposal then went before the European Union's finance ministers, known as the Eurogroup, who gave their approval, according to Reuters and Bloomberg.

How would you feel?
[youtube]http://www.youtube.com/watch?v=X-yc8HwD-to[/youtube]

 

I'm eager to see what Russia's response to this will be. It may not be as dramatic as cutting off the gas supply to europe, but I would expect a lot of anti-europe sentiment towards european companies that have ties to Russia and there are a few. Being frozen out of the market and extra taxes would be a starting place.

 

Also wouldn't suck if you had 101k in the bank compared to your mate with 99k

 

what kind of response you are expecting?
there will be no official response
"corrupted money" will keep their mouth shut

that's why this astounding 40%

 

Surely they won't be that stupid and it'll just be a freeze on all amounts over the first $100,000 with the remaining funds paid back if and when possible as the banks assets are liquidated.

It's impossible to get better details but it's a kick in the nuts if the Cyprus banks incurred significant losses from the forced Greek debt "haircuts" only to be told that they need to hit their saving deposits to pay back their bonds.

 

40% is for Bank of Cyprus deposit holders.

Scary for those who chose to keep their >100k in the second largest bank (Laiki Bank) who are likely to lose 100%

 

i dont believe for one second this story about 'corrupt' money and the Russian mafia etc..

That's just a sh.t story to paper over the wholesale theft of these peoples' money.

A more credible story is that the lions share of these accounts holding over $100K belong to bona fide business people of small to medium enterprises.

You cannot trust government/banks/mass media for the truth. I'll bet these unfortunate victims of theft are as much "Russian Mafia" as what us stackers are "terrorists" when our gubmint steals our physical bullion!

 

There doesn't need to be an official response, but I can't see Russian businessmen whether corrupt or legitimate losing 40% of their earnings in one hit sitting idly by and shrugging their shoulders as if it doesn't matter to them. It just may increasingly become more difficult for European companies to survive in the Russian market.

 

I thought it is 20% .... :|

 

The 20% levy got voted down by the Cyprus parliament

40%+ was done under a bankruptcy, so not a 'tax/levy' and no vote needed

 

The European elitist scum will get what's coming to them

 

Assassinations are not very expensive - sad but true.

 

Become your own central bank.

 

What? ferrari's & mercedes?

 

You couldn't make this shit up and be believable, yet there it is in black and white.
Snip, thankyou,you are now worth 40% less than you were yesterday.

 

100% theft from Laiki & 40% theft from Bank of Cyprus

Actually WORSE than last weeks proposed deal.
http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html

Lets see Nikkei UP 1.77% as I write this.

So the REAL DEAL is to save the Markets from crashing using the peoples money.

I now officially give up trying to 'read' markets.

 

I wonder how many more Popular Banks of Cyprus will be blown up

http://www.youtube.com/watch?v=CVTgRza8qKA

It's obvious other struggling countries in the Euro-zone that are not surrounded by sea are watching this test case to see how it will play out. It's one thing for the ATM's to run dry in Cyprus but in countries like Italy / Spain etc for some it's just a bus or a train to the ATM's in the neighboring country.

Bit more contagion still to come from Europe

 

Belarus devalued its currency by 50%+ in 2011, that hit anyone with any roubles in their bank account or under their mattress, lost half their buying power overnight. When governments have the ability to make money without producing anything they will. This has been shown time and time again. Fiat currency is a necessary evil for day to day living but as a store of wealth it leaves a lot to be desired.

 

Doesn't matter ... point is it will come with a free "optional extra" which will be detrimental to their health