Joe King

Shocked to hear that the EU bailout will be partly financed by money held in Cyprus bank accounts:

Those with under 100,000 euros deposited must pay 6.75%

Those with more than 100,000 in their accounts must pay 9.9%

The money will simply be taken from accounts.

This is nothing short of robbery.

Imagine if you had just transferred money to Cyprus to buy a property? What then? Will you lose 9.9% of it for investing in Cyprus?

dooper

Absolutely scandalous and a crime against the people. The people should take to the streets. This will create a run on the banks across Europe.

davidinspain

Just read about this on the BBC website,a total scandal.

Mitzyboy

Been watching it on SKY. Seems you cant draw any money out until Tuesday. It's robbery, nothing less

scot47

This must further erode any trust that people still had in banks and the banking system.

Charismatic

It's called a run and it'll happen on Tuesday. The problem now is making sure you draw down your account before the run dries them out of cash (don't take a draft, delayed transfer or transfer with recourse) and the bank/EU/government decide you need to take a bigger stake in a failing bank. The equity you get will very likely be near worthless quickly anyway.

I can't believe government and EU broke the depositors guarantee scheme, it's sacred in banking and fundamental to the trust people have in banks.

People will need to start a foreign savings account denominated in Euro in a safer bank/country in the long term but just holding Euro notes is safe enough until you can make such arrangements.

I'm usually one of those people that advises people not to panic but this might actually be a good time to cash out. Good luck.

Mitzyboy

Its not the banks, its the government

Joe King

This has nothing to do with the depositors guarantee scheme - the banks haven't failed and even if they had that guarantee only covers a proportion of deposits.

Taking all your money out of your account on Tuesday when the banks reopen will not save you from the levy - it will already have been taken.

ATM machines will allow you to take out €400 a day until then, but that's small comfort to ex-pats who have their life savings in a Cyprus bank.

Basically, it is going to happen. Britons have around 2 billion euros of deposits on island according to newspapers and could lose up to €200 million collectively - just like that. Absolutely disgraceful.

Joe King

Breaking news.

"Cyprus's parliament has postponed an emergency session on a controversial bailout deal for the country's banks.

The debate, and a presidential address, were to happen on Sunday but will now be held on Monday, state media said."

franc11s

Here's why I don't think this would really happen. The Governments around the EU, indeed the world, the IMF and the Banks would see the biggest revolt in modern day society;

1. Every country needs savers, indeed, does everything to encourage it. That's why Governments HAVE guarantee schemes!
2. Without savers, there are no loans
3. The ramifications globally will prevent this every happening.
4. It has shown the IMF, the EU, and the financial system is as corrupt as ever
5. It is proving, that we the people have been lied to over and over and over

I'm going to cash.

franc11s

But I read, the "amounts" have already been taken/frozen.

Joe King

You've just contradicted yourself. First you say something like this would never happen, but then say you've read that it already has happened!

As for it never happening because of the reasons you suggest, try telling that to the Argentinians who were cheated out of their life savings in 2001-2002!

Joe King

Another update from the BBC:

Cyprus bank levy: UK to compensate troops and government workers based in Cyprus, but not ordinary ex-pats

BLUEANDY5

Hi all
We have just returned from Cyprus after spending the week viewing properties we opened an bank account while we was there (only put in €100) so we could transfer money over when we have decided to buy now that's going to be in 5 weeks when we will transfer the money.
Now should we find another way to transfer the money without touching a bank in Cyprus. (or should we leave buying a property all together)
Regards Andy.

Mitzyboy

And that .... in a nutshell ..... is the reaction the Government there have just caused, with no thought into the consequences of their actions.

If I were about to buy property there ... I would be changing my mind and skipping it completely