CYPRUS: GOVERNMENT TAKES UP TO 10% OF INDIVIDUALS’ FUNDS ON DEPOSIT WITH BANKS AS PART OF BAILOUT AGREEMENT
March 16th, 2013Via: BBC:
People in Cyprus have reacted with shock to news of a one-off levy of up to 10% on savings as part of a 10bn-euro (£8.7bn; $13bn) bailout agreed in Brussels.
Savers could be seen queuing at cash machines amid resentment at the charge.
The deal reached with euro partners and the IMF marks a radical departure from previous international aid packages.
President Nicos Anastasiades defended it as a “painful” step, taken to avoid a disorderly bankruptcy.
The Cypriot leader, who was elected last month on a promise to tackle the country’s debt crisis, will address the nation on Sunday.
…
People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said.
Those with greater sums will lose 9.9%.
Cypriot bank officials quoted by AP news agency said depositors could access all of their money except the amount set by the levy.
The levy itself will not take effect until Tuesday, following a public holiday, but action is being taken to control electronic money transfers over the weekend.
Co-operative banks, the only ones open in Cyprus on Saturday, closed after people started queuing to withdraw their money.
“This is robbery and we must get the EU to stop this,” Alan, a British expatriate saver in Cyprus, told BBC News.
More: Savers Bear Brunt of Unprecedented Cyprus Bailout
Lookee what Jim Sinclair says about how the Cyprus Cash Grab is going to piss off Cryptogon’s favorite ACTION MAN:
“The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians. That’s absolutely false. After 1985, when the ‘Robber Barrons’ of Russia took over the general economics of Russia, that was the transformation from the KGB to private business. The primary place for exported Russian funds was Cyprus.
Now, there is one leader in the world that would be very dangerous to challenge, and that is Putin of Russia. What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’ Russian ‘black money’ is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Whose money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/16_Sinclair_-_One_Of_The_Most_Important_Events_In_History_%26_Gold.html
Is this perhaps the spark that lights the fire?
I know when looking at the masses it’s hard to see anything resembling intelligence, a lot of people just go along with the flow. But there are a number of intelligent people who are just naive about things not immediately in their specialized domain.
A lot of those people didn’t go run and take their money out of the banks during previous crises because they logically figured if the banks collapse and the economy collapses, what the hell will it matter? But now… they might start taking a good bit out either as a protective measure, or if they are directly impacted by this… out of spite. If that sparks some contagion amongst the larger population we could see some “extended bank holidays” on the near horizon.
I can’t see how Cypriot banks won’t have a run, even if it doesn’t spread. The Russians aren’t going to leave their money there that’s for sure.
I think this is retaliation for the heroin seizure stunt that the Russians pulled this week. Nothing like stealing the CIA’s stash. http://chasvoice.blogspot.com/2013/03/over-20-tons-of-heroin-seized-in.html?m=0
MISH makes it clear that he believes runs on banks in Spain will begin in 3…2…1…
http://globaleconomicanalysis.blogspot.com/?m=1
The whole scenario reminds me of Slim Pickins riding that bloated nuclear warhead in Dr. Strangelove. This is all looking like a one-way trip into an explosion that sets off financial doomsday for the present world system. Get ready to meet the new boss, same as the old boss.
Correct me if I’m wrong, but didn’t the 1930s great depression begin with bank runs in Europe?
Grab some (organic) potato ships and enjoy the show…