Thinking of moving to Cyprus, is it a bad time?
#16
Banned
Joined: Mar 2013
Location: In a small village in Dartmoor, Devon
Posts: 70
Re: Thinking of moving to Cyprus, is it a bad time?
getoutofbritainquick
I totally concur with what you write. My wife and I are fortunate in that we live in a small village in the middle of Dartmoor and have been shielded to a great extent. However, the Polish influx in Devon is huge although they do appear to be doing their bit. Road signs in Polish are a bit much though!
The pending arrival of Romanians/Bulgarians is an entirely different matter and makes me ask in what direction my country is going. Very soon we are going to be the minority in our own country in all respects.
I totally concur with what you write. My wife and I are fortunate in that we live in a small village in the middle of Dartmoor and have been shielded to a great extent. However, the Polish influx in Devon is huge although they do appear to be doing their bit. Road signs in Polish are a bit much though!
The pending arrival of Romanians/Bulgarians is an entirely different matter and makes me ask in what direction my country is going. Very soon we are going to be the minority in our own country in all respects.
#18
Re: Thinking of moving to Cyprus, is it a bad time?
In my opinion, the main problem is that the Cyprus banking system with assets of 750% of GDP will likely shrink significantly. The Cyprus banking system with it's tax haven, secrecy, and high interest rates attracted large amounts of foreign depositors but with the proposed tax of up to 40% on deposits of more than 100,000€, most of that money will likely flee the country.
With such large amounts of deposits in Cyprus banks, this has been the main driver of prosperity of Cyprus over the years. Even prior to the recent crisis, the unemployment rate has gone from about 7% to 15% but with the recent crisis, it is likely that the unemployment rate will increase to more than 25% and the economy will shrink significantly. Although the IMF predicts that the Cyprus economy will contract by only 3.5% during this year, I suspect those figures are very optimistic and will likely be a multiple of that.
Therefore with such a high unemployment rate and probably a much smaller banking system, it will likely be very difficult to find a decent paying job or possibly any job at all.
With such large amounts of deposits in Cyprus banks, this has been the main driver of prosperity of Cyprus over the years. Even prior to the recent crisis, the unemployment rate has gone from about 7% to 15% but with the recent crisis, it is likely that the unemployment rate will increase to more than 25% and the economy will shrink significantly. Although the IMF predicts that the Cyprus economy will contract by only 3.5% during this year, I suspect those figures are very optimistic and will likely be a multiple of that.
Therefore with such a high unemployment rate and probably a much smaller banking system, it will likely be very difficult to find a decent paying job or possibly any job at all.
#19
BE Enthusiast
Joined: Nov 2008
Location: Cyprus
Posts: 367
Re: Thinking of moving to Cyprus, is it a bad time?
The Laiki bank was the biggest problem as most foreign non resident moeny was in there as it gave higher interestrates than others. ALL of the money over 100K in Laiki accounts has been seized, the account holders will get bonds in return but who knows whether those bonds will ever be worth anything.
#20
Just Joined
Joined: Mar 2013
Posts: 11
Re: Thinking of moving to Cyprus, is it a bad time?
With the exception funds for humanitarian purposes , aviation fuel and certain other categories, guess how many large Russian depositors suddenly found the need to fill up the jets etc, etc , hence relatively muted response from the motherland.
#21
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: Thinking of moving to Cyprus, is it a bad time?
There will be retribution, Putin's mafia will not take this lying down........
#22
Re: Thinking of moving to Cyprus, is it a bad time?
All bank accounts were frozen on the day that the levy on accounts wasfirst announced. No money has been able to leave the island and only limited withdrawals from the AtMs, therefore anyone who did not get wind of what was to come and remove their money in advance will not be able to take it.
The Laiki bank was the biggest problem as most foreign non resident moeny was in there as it gave higher interestrates than others. ALL of the money over 100K in Laiki accounts has been seized, the account holders will get bonds in return but who knows whether those bonds will ever be worth anything.
The Laiki bank was the biggest problem as most foreign non resident moeny was in there as it gave higher interestrates than others. ALL of the money over 100K in Laiki accounts has been seized, the account holders will get bonds in return but who knows whether those bonds will ever be worth anything.
That is one of the reasons that some predict that the tax can be as high as 40% on deposits over 100,000€ since nobody knows how much money is left in the bank.
Last edited by Michael; Mar 28th 2013 at 8:22 am.
#23
BE Enthusiast
Joined: Nov 2008
Location: Cyprus
Posts: 367
Re: Thinking of moving to Cyprus, is it a bad time?
In the Laiki bank everything over 100k is being taken not just 40%.
#24
Re: Thinking of moving to Cyprus, is it a bad time?
It appears that you are correct since €4.2bn in Laiki deposits (if still in the bank) of more than €100,000 will be placed in a "bad bank", meaning they could be wiped out entirely. However total Cyprus banking losses are approximately €16bn of which the EU is loaning the Cyprus government about €10.2bn so that still leaves a shortfall of about €1.4bn and a big debt to repay the EU.
I suspect the 40% figure that I was quoting was yesterday's news.
I suspect the 40% figure that I was quoting was yesterday's news.
#25
BE Enthusiast
Joined: Nov 2008
Location: Cyprus
Posts: 367
Re: Thinking of moving to Cyprus, is it a bad time?
I beleive that large deposits in the bank of Cyprus will also bit hit but not as hard as Laiki.
#26
Just Joined
Joined: Mar 2013
Posts: 11
Re: Thinking of moving to Cyprus, is it a bad time?
They won't need too , they managed to shift their money out despite the freeze , as well as having access through the London branches, this is why whatever is left is going to suffer a bigger haircut than first suggested.
#27
Re: Thinking of moving to Cyprus, is it a bad time?
Remember the Icelandic banks where all the assets in British and Netherlands branches were moved to Iceland to pay off Icelandic depositors as well as some assets were moved to tax haven countries by the owners of the banks. German and other European governments realized what was happening and froze the deposits but the Brits and the Dutch were behind the curve ball leaving them without about €5bn to pay off their depositors.
Last edited by Michael; Mar 28th 2013 at 9:31 am.
#28
Just Joined
Joined: Mar 2013
Posts: 11
Re: Thinking of moving to Cyprus, is it a bad time?
I suspect their will have been some complicity , you can be sure as well that they took the cash beyond the EU grasp.
#29
Forum Regular
Joined: Jun 2012
Posts: 228
Re: Thinking of moving to Cyprus, is it a bad time?
sorry and good luck its always been a UK place until the Greeks allowed Russia money to flood ah you know or you shut your eyes
#30
Forum Regular
Joined: Jun 2012
Posts: 228
Re: Thinking of moving to Cyprus, is it a bad time?
if you can fight them involve the Turks make it 1 island hey the turks want to be the first Islam country in the EU