"Bank account levy brings withdrawals
NICOSIA — Nervous depositors in Cyprus rushed to ATMs on Saturday to deplete their accounts after a bailout agreement with international creditors that includes a levy on all the country’s bank accounts. Lines formed at many ATMs as people scrambled to pull their money out after word that the $13 billion rescue package Cyprus agreed upon with its euro-area partners and the International Monetary Fund included the tax. People with less than $130,000 in their accounts will have to pay a one-time tax of 6.75 percent, those with more money will lose 9.9 percent (AP)."
Time to take all your money except the bare minimum out of the bank, wherever you live.
At least politicians in Europe look out for their peoples' interest first:
"Cyprus leader backs savings tax; President seeks to amend plan but urges passage" by Menelaos Hadjicostis | Associated Press, March 18, 2013
NICOSIA, Cyprus — Cyprus’ president said Sunday he is trying to amend an unpopular eurozone bailout plan that would tax deposits in the country’s banks.
But in a nationally televised speech, President Nicos Anastasiades also urged lawmakers to approve the tax in a vote Monday, saying it is essential to save the country from bankruptcy.
Well, we see who the president of Cyprus works for.
Some 25 lawmakers in the 56-seat Cypriot Parliament said they wouldn’t vote for the tax amid deep resentment over a move some called disastrous.
Or outright hate even!
In particular, they cite the tax’s effect on small savers.
Monday is a national holiday in Cyprus.
‘‘I completely share the unpleasant sentiment that this difficult and onerous decision has caused,’’ Anastasiades said. ‘‘That’s why I continue to give battle so that the decisions of the eurozone are amended in the next hours to limit the effect on small depositors.’’
Bending over and spreading cheek for banksters is giving battle, huh?
In exchange for $13 billion in rescue money, creditors would impose a one-time tax of 6.75 percent on all bank deposits under $131,000 and 9.9 percent above that amount.
I call it STEALING!
The decision Saturday spurred anxious depositors to rush to ATM machines to withdraw as much of their money as they could....
The deposit tax is part of a bailout agreement reached after talks by finance ministers from euro countries and representatives of the International Monetary Fund and the European Central Bank.
Yeah, I'm sure those guys are looking out for the best interests of the citizens of Cyprus.
The Cypriot bailout follows those for Greece, Portugal, Ireland, and the Spanish banking sector, but it is the first one that dips into people’s savings to finance a bailout. Analysts fear the move could roil international markets and jeopardize Europe’s fragile economies.
Why even bother putting your money in a bank at all? What a fucking band of criminals.
Officials in Spain and Italy tried during the weekend to reassure their citizens by saying the case in Cyprus is unique, and that bank deposits in their countries will remain safe.
Hey, what's one more lie coming from slavish governments that shovel them like there is no tomorrow?
In Cyprus, the levy — which also would hit wealthy Russian depositors who have put vast sums into Cyprus’ banks in recent years — is expected to raise $7.58 billion to recapitalize the nation’s banks and service the country’s debt.
Like I keep typing time and again, it's ALL SO LOOTING BANKSTERS can GET PAID!
Related:
"Russian mafia money, a huge part of Cypriot banking, will see its 9.9% levy as just a cost of doing business. The island’s reputation as a money-laundering centre will be intact, at the cost of hurting the little guy."
Oh, it's Jewish mafia money -- which is why I see why it is such a concern in my paper.
Cypriot banks got into trouble when they lost $5.8 billion on their Greek government bond holdings after eurozone leaders wrote down Greece’s debt last year.
And because of that the average customer must pay?
Anastasiades, who only assumed the Cypriot presidency March 1, explained why he had changed his position and consented to the taxes. He had vehemently rejected any idea of going after deposits to help pay for a bailout during the campaign and after his election.
Oh, a politician lied? Nothing new there.
‘‘The solution that we have reached is certainly not the one we wanted, but it is the least painful under the circumstances because above all it leaves the management of our economy in our own hands,’’ Anastasiades said Sunday.
Why wouldn't management of the economy be in your hands? Are you saying Cyprus has no more sovereignty?
And the solution is least painful for who, f*** wad?
He said the tax would only be as much as the interest collected on deposits during two years and stressed that it would only occur once because it would ensure the bailout would not push the country’s debt to unsustainable levels.
And the people of Cyprus should believe him because.... ????
He said pension and provident funds will remain untouched, and there would not be any need for further salary and pension cuts, or an earlier demand by creditors for a financial transaction tax, which would have damaged Cyprus’ financial services-driven economy.
Financial services-driven economy means money-laundering outpost, and no tax on them.
Un-f***ing-believable.
--more--"
"Cyprus struggles to contain financial crisis; President urges EU to modify tax on savings" by Liz Alderman | New York Times, March 19, 2013
NICOSIA, Cyprus — Leaders in Cyprus and Brussels and elsewhere in Europe scrambled Monday to contain the fallout from the eurozone’s decision over the weekend to force ordinary bank depositors to share the pain of an international bailout.
And what did they do to cause it? Why should they "share the pain" so greedy banksters can gorge on more loot?
Much of the day was given over to cross-border finger pointing and a public reluctance for anyone to take responsibility — some might say blame — for a decision that some analysts worry could cause a run on banks in Cyprus, and possibly in Italy and other troubled eurozone countries.
Go get your money now.
Cyprus, whose banking system is on the verge of collapse, is now the fifth nation among the 17 members of the euro to seek financial assistance since the crisis broke out three years ago.
And for that the average depositor must pay -- this after we were told the EU had been saved and the crisis salved.
Members of the Eurogroup, the club of eurozone finance ministers, which finished a bailout plan for Cyprus in the wee hours of Saturday, were holding a conference call Monday evening to talk things through once more.
Yeah, shove this thing up people's ass late on a Saturday night, yeah. Nice move.
As announced on Saturday, depositors in Cypriot banks with balances of more than $129,500 would have to pay a one-time tax of 9.9 percent on their holdings.
Those with balances below that threshold would pay 6.75 percent.
The Cypriot president, Nicos Anastasiades, was trying to compel policy makers in Brussels to soften the terms of the deal, saying EU leaders used ‘‘blackmail’’ to get him to agree to penalize depositors in order to receive a bailout package worth $13 billion.
Showing just how worthless and weak he is.
A crowd of about 800 protesters gathered in front of the presidential palace, shouting angrily at Anastasiades and inveighing against Germany and European leaders as he entered the building to meet with his Cabinet.
Time for EVERYONE to get OUT IN THE STREETS!!!
The government said it would keep Cypriot banks shuttered through Wednesday, well beyond a bank holiday that was supposed to end Monday.
Oh, now you CAN'T GET YOUR MONEY, huh?
This was the KIND of THING the same economic geniuses did way back in the 1930s just before the Great Depression. What it tells you is the world is now in the midst of the Grand Depression and the official start of WWIII is right around the corner.
--more--"
"Lawmakers in Cyprus reject bailout bill; Government must find new way to raise cash" by Menelaos Hadjicostis and Elena Becatoros | Associated Press, March 20, 2013
NICOSIA, Cyprus — Cypriot lawmakers on Tuesday rejected a critical draft bill that would have seized part of people’s bank deposits in order to qualify for an international bailout, with not a single vote in favor.
Related:
Self-preservation is the first instinct of politicians.
The rejection leaves Cyprus’s bailout in question. Without external funds, the country’s banks face collapse and the government could go bankrupt.
Fine. Let 'em go. It's time for them to live with the consequences of their actions.
Nicosia will now have to come up with an alternative plan to raise the money: The government could try to offer a compromise bill that would be more palatable to lawmakers.
Oh, so they are still going to rob you, just steal a little less.
The bill, which had been amended Tuesday morning to shield small deposit holders from the deposit tax, was rejected with 36 votes against and 19 abstentions. One deputy was absent.
‘‘No to new colonial bonds, no to subjugation, no to national dishonor and raw blackmail,’’ house speaker Yiannakis Omirou said.
Yeah, what part of no do you looting f***s not get, the n or the o part?
After the vote failed, he said political leaders will have a meeting with the president on Wednesday to discuss the next steps.
Nicholas Papadopoulos, the chairman of the parliamentary finance committee, said banks would remain closed ‘‘for as long as we need to conclude an agreement’’ but stressed this would be ‘‘in the next few days.’’ Banks had been ordered to remain shut until Thursday while the bill was debated and amended, to prevent a bank run.
And the SIMPLE FACT that this has to be DONE AT ALL means the PONZI SCHEME of PRIVATE CENTRAL BANKING is COLLAPSING!
Papadopoulos said Cyprus wants a renegotiation of its bailout deal.
PFFFFFFFT!
But the idea of seizing savings was something Cyprus rejected. ‘‘It has not been [implemented] in any other country in Europe and we don’t wish to be the experiment of Europe.’’
Hundreds of protesters outside Parliament cheered and sang the national anthem when they heard the bill failed....
Just stay vigilant because our Congress once rejected a bailout and it was then passed days later.
Facing fury at home and from Russians who hold an estimated third of the total amount in Cypriot banks, the government amended the bill Tuesday to exempt small depositors with up to 20,000 euros in the bank, or about $25,800.
But the change was not enough for lawmakers....
Although Cyprus is the smallest eurozone country to be bailed out, the details of the plan had sent shockwaves through the eurozone as it was the first time savers’ bank accounts have been directly targeted.
And yet you are told and encouraged to save money.
Other bailed-out countries such as Greece, Ireland, and Portugal have raised funds by imposing new taxes.
Oh, don't worry. Those are coming, too.
Proponents of the deposit seizure argued it would have made foreigners who have taken advantage of Cyprus’s low-tax regime share the cost of the bailout of the banks, which have been hit hard by their overexposure to bad Greek debt.
A low tax regime for banks but not you?
Finance Minister Michalis Sarris flew to Moscow Tuesday to meet with his Russian counterpart, arriving there shortly before the vote.
Andreas Charalambous, a senior official at the ministry, said the aim is to extend repayment of a $3.2 billion loan Russia granted Cyprus in late 2011 when it could no longer borrow from international markets.
That's a hell of a way to thank 'em.
He said Cyprus was also looking for ‘‘potential interest for further investment in the country.’’
Translation: they are begging for foreign capital.
Opponents say a blanket charge on people’s bank accounts will hurt ordinary Cypriots more, and could shake confidence in the banking sector.
Yeah, whatever is needed to keep confidence in the banks.
Well, little late in the "game" for that.
And by going after deposits, European policy makers have set a precedent that could be repeated in the future.
You BETTER GO GET YOUR MONEY NOW, citizen of the world, WHEREVER YOU LIVE!
--more--"
Related: Cyprus Seeks Bailout
Also see: EU, IMF should reverse course on Cyprus bailout
Must be important if the Globe is editorializing about it.
And about that election:
"Runoff called in Cyprus presidential election" Associated Press, February 18, 2013
NICOSIA, Cyprus — Cyprus heads into a runoff presidential election next weekend, with voters called on to select who will lead the country through a severe financial crisis after no candidate won an outright majority on Sunday.
Nicos Anastasiades, a right-winger who presented himself as the most capable to negotiate a bailout with Cyprus’ European partners and who went into the election a strong favorite, won the first round with just over 45 percent of the vote. But he fell short of the 50 percent plus one vote needed for an outright victory.
In the Feb. 24 runoff, he will face Stavros Malas, a left-winger who has advocated being more assertive in negotiations for bailout loans to limit the severity of austerity measures they require....
The change in leadership, after unpopular President Dimitris Christofias said he would not seek reelection, comes at a crucial juncture for Cyprus. The other 16 countries that use the euro are expected to decide next month on a financial lifeline for the tiny country of less than a million people.
Many had criticized Christofias and his communist-rooted AKEL party for a shrinking economy and 15 percent jobless rate, as well as having mishandled events that led to a deadly explosion of seized Iranian munitions that wrecked the island’s main power station.
See: Israel Grabs Lebanese Gas
And anything else they can get their grubby hands on.
--more--"
"Conservative wins Cyprus presidency" Associated Press, February 25, 2013
NICOSIA, Cyprus — Conservative candidate Nicos Anastasiades won Cyprus’s presidency Sunday by one of the widest margins in 30 years and now faces the formidable task of preventing the country from suffering a financial meltdown.
Anastasiades, 66, won the runoff election with 57 percent of the vote, far ahead of left-wing rival Stavros Malas, who nabbed 42 percent, final results showed.
The election comes as Cyprus is negotiating a financial rescue package with the eurozone’s other 16 countries and the International Monetary Fund.
The wide margin of victory for Anastasiades indicates Cypriots are prepared, to a degree, to stomach what could be painful austerity measures to reform the economy, as well as a snub to left-wing rule that many believed is responsible for the country’s sorry economic state.
Oh, so the Cypriots VOTED for CHANGE, huh?
Once again the "left" in Europe has let their people down.
Most Cypriots are aware there’s little option but to secure outside financial help — which will undoubtedly come with demands for public sector spending cuts and other austerity measures — to end the uncertainty dragging the economy down. The country has already enacted deep public sector wage cuts and tax hikes under a preliminary bailout agreement.
And it TILL WASN'T ENOUGH for the vultures and vampires of international finance!
Sunday’s vote was ‘‘a clear and strong mandate for change and reforms to lift our country out of the vicious circle of crisis,” Anastasiades spokesman Tasos Mitsopoulos said after exit polls showed his candidate had won the powerful presidency.
Oh, so the Cypriots VOTED for CHANGE, huh?
Once again the "left" in Europe has let their people down.
Most Cypriots are aware there’s little option but to secure outside financial help — which will undoubtedly come with demands for public sector spending cuts and other austerity measures — to end the uncertainty dragging the economy down. The country has already enacted deep public sector wage cuts and tax hikes under a preliminary bailout agreement.
And it TILL WASN'T ENOUGH for the vultures and vampires of international finance!
Sunday’s vote was ‘‘a clear and strong mandate for change and reforms to lift our country out of the vicious circle of crisis,” Anastasiades spokesman Tasos Mitsopoulos said after exit polls showed his candidate had won the powerful presidency.
As results trickled in, Anastasiades’ supporters celebrated outside his campaign headquarters in the capital, Nicosia, honking horns and waving flags.
The new president will face a tough battle convincing reluctant countries, especially Europe’s economic powerhouse Germany, that tiny Cyprus deserves help after its banks lost billions of euros on bad Greek debt....
His defeated rival said the new president could count on his support if his actions were deemed to be beneficial for Cyprus.
Oh, so it REALLY DIDN'T MATTER WHO was elected, did it?
His defeated rival said the new president could count on his support if his actions were deemed to be beneficial for Cyprus.
Oh, so it REALLY DIDN'T MATTER WHO was elected, did it?
--more--"
"Will The Banking Meltdown In Cyprus Be A “Lehman Brothers Moment” For All Of Europe?
By Michael
March 19th, 2013
Cyprus lawmakers may have rejected the bank account tax, but the truth is that the financial crisis in Cyprus is just getting started. Right now, the two largest banks in Cyprus are dangerously close to a meltdown. If they fail, depositors could end up losing virtually all of their money. You see, the banking system of Cyprus absolutely dwarfs the GDP of that small island nation. Cyprus is known all over the world as a major offshore tax haven, and wealthy Russians and wealthy Europeans have been pouring massive amounts of money into the banking system over the last several decades. Yes, those bank deposits are supposed to be insured, but the truth is that there is no way that the government of Cyprus could ever come up with enough money to cover the massive losses that we are potentially looking at. This is a case where the banking system of a nation has gotten so large that the national government is absolutely powerless to stop a collapse from happening. If those banks fail, depositors may end up getting 50 percent of their money or they may end up getting nothing. We just don’t know how bad the damage is yet. And considering the fact that many of the largest corporations and many of the wealthiest individuals in Europe have huge mountains of cash stashed in Cyprus, the fallout from a banking collapse could potentially be absolutely catastrophic.
So Cyprus needs to come up with some money from somewhere in order to keep that from happening.
Basically, there are three options at this point…
1) Even though the bank account confiscation tax was voted down today, there is talk that it could come back in another form. This is really the only place inside of Cyprus where enough money can be raised to bail out the banks.
2) Cyprus could go back and beg the IMF and the EU for money, but the IMF and the EU have already said that they want depositors to share in the pain.
3) Cyprus could get the money that they need from the Russians. This will be discussed in more detail later.
A lot of people will see the headlines proclaiming that Cyprus has voted against the wealth tax and think that everything is going to be okay now, but that is very far from the truth.
The reality is that this is only the first move in a very complicated chess game. The problems for Cyprus are only just the beginning…
The Russian mafia launders a lot of money in Cyprus. The Russian mafia is not about to let anyone steal their money, and they have an international reputation for being absolutely brutal. In the end, pressure from the mafia may have been one of the primary reasons why many Cyprus lawmakers voted against the bank account tax. As Dennis Gartman astutely noted, by voting against the wealth tax they may have literally been saving their own lives…
In addition, as I wrote about yesterday, some Russian investors have stepped forward and have offered to buy majority stakes in the two largest banks in Cyprus.
So why hasn’t Cyprus accepted help from Russia yet? Well, it is a geopolitical thing. Cyprus is a part of the EU, and European officials do not want Russia to become the dominant influence in Cyprus.
But if the IMF and the EU are not going to step up and help Cyprus, the Russian offers will become more tempting with each passing day.
Meanwhile, the attempted attack on bank accounts in Cyprus is making people nervous all over Europe....
And if you don’t think that this could ever happen anywhere else, you are just being delusional.
In fact, it is already happening. In fact, the Finance Minister of New Zealand is now proposing that depositors in his nation should be required to “take a haircut” if any banks in his nation fail…
But surely there will never be any major banking problems in the United States, right?
Well, large numbers of Chase customers that logged into their accounts on Monday discovered that a “computer glitch” had reset all of their account balances to zero…
How would you feel if you suddenly discovered that you had no money in the bank?
Most Americans just assume that their money will always be there because their bank accounts are “guaranteed” by deposit insurance and by the full faith and credit of the federal government.
But that is exactly what the people of Cyprus thought too, and look how that turned out....
So don’t think for a second that the crisis in Cyprus is over. The banking meltdown is just getting started, and the consequences could end up being far more dramatic than any of us could possibly imagine.
--MORE--"
"Will The Banking Meltdown In Cyprus Be A “Lehman Brothers Moment” For All Of Europe?
By Michael
March 19th, 2013
Cyprus lawmakers may have rejected the bank account tax, but the truth is that the financial crisis in Cyprus is just getting started. Right now, the two largest banks in Cyprus are dangerously close to a meltdown. If they fail, depositors could end up losing virtually all of their money. You see, the banking system of Cyprus absolutely dwarfs the GDP of that small island nation. Cyprus is known all over the world as a major offshore tax haven, and wealthy Russians and wealthy Europeans have been pouring massive amounts of money into the banking system over the last several decades. Yes, those bank deposits are supposed to be insured, but the truth is that there is no way that the government of Cyprus could ever come up with enough money to cover the massive losses that we are potentially looking at. This is a case where the banking system of a nation has gotten so large that the national government is absolutely powerless to stop a collapse from happening. If those banks fail, depositors may end up getting 50 percent of their money or they may end up getting nothing. We just don’t know how bad the damage is yet. And considering the fact that many of the largest corporations and many of the wealthiest individuals in Europe have huge mountains of cash stashed in Cyprus, the fallout from a banking collapse could potentially be absolutely catastrophic.
So Cyprus needs to come up with some money from somewhere in order to keep that from happening.
Basically, there are three options at this point…
1) Even though the bank account confiscation tax was voted down today, there is talk that it could come back in another form. This is really the only place inside of Cyprus where enough money can be raised to bail out the banks.
2) Cyprus could go back and beg the IMF and the EU for money, but the IMF and the EU have already said that they want depositors to share in the pain.
3) Cyprus could get the money that they need from the Russians. This will be discussed in more detail later.
A lot of people will see the headlines proclaiming that Cyprus has voted against the wealth tax and think that everything is going to be okay now, but that is very far from the truth.
The reality is that this is only the first move in a very complicated chess game. The problems for Cyprus are only just the beginning…
The Russian mafia launders a lot of money in Cyprus. The Russian mafia is not about to let anyone steal their money, and they have an international reputation for being absolutely brutal. In the end, pressure from the mafia may have been one of the primary reasons why many Cyprus lawmakers voted against the bank account tax. As Dennis Gartman astutely noted, by voting against the wealth tax they may have literally been saving their own lives…
In addition, as I wrote about yesterday, some Russian investors have stepped forward and have offered to buy majority stakes in the two largest banks in Cyprus.
So why hasn’t Cyprus accepted help from Russia yet? Well, it is a geopolitical thing. Cyprus is a part of the EU, and European officials do not want Russia to become the dominant influence in Cyprus.
But if the IMF and the EU are not going to step up and help Cyprus, the Russian offers will become more tempting with each passing day.
Meanwhile, the attempted attack on bank accounts in Cyprus is making people nervous all over Europe....
And if you don’t think that this could ever happen anywhere else, you are just being delusional.
In fact, it is already happening. In fact, the Finance Minister of New Zealand is now proposing that depositors in his nation should be required to “take a haircut” if any banks in his nation fail…
But surely there will never be any major banking problems in the United States, right?
Well, large numbers of Chase customers that logged into their accounts on Monday discovered that a “computer glitch” had reset all of their account balances to zero…
How would you feel if you suddenly discovered that you had no money in the bank?
Most Americans just assume that their money will always be there because their bank accounts are “guaranteed” by deposit insurance and by the full faith and credit of the federal government.
But that is exactly what the people of Cyprus thought too, and look how that turned out....
So don’t think for a second that the crisis in Cyprus is over. The banking meltdown is just getting started, and the consequences could end up being far more dramatic than any of us could possibly imagine.
--MORE--"
