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Ex-pats and money in Cyprus banks

Ex-pats and money in Cyprus banks

Old Mar 17th 2013, 2:00 pm
  #16  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by 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.
Imagine if you had transferred the entire funds to buy a property last week - you would be thousands of pounds out of pocket. Lucky escape! Others won't have been so fortunate.

A lot of rich Cypriots moved their money out of the country months ago - links with Greece and the Russian dimension was enough to see this happen. It's those who can least afford it who will now be hit as usual.

As Mitzyboy so rightly says the consequences of this are far-reaching. Property sellers are already looking at big losses because of a falling market - and cannot find buyers at the reduced price. Now who is going to want to risk buying on the island?

My understanding is that the levy is a one-off event. It may be that new investments / deposits are not affected. Then again a few days ago, politicians were assuring Cypriots that there would be no levy!

Nobody can tell you whether to buy or not in Cyprus. Your money, your choice, but if you do go ahead, for heaven's sake don't get talked into paying "cash" for the property so that you and the seller avoid the bank levy. DEFINITELY speak to a solicitor who will explain the consequences of doing so, not just estate agents and vendors.

Last edited by Joe King; Mar 17th 2013 at 2:02 pm.
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Old Mar 17th 2013, 3:52 pm
  #17  
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Default Re: Ex-pats and money in Cyprus banks

Thanks for the reply's guy's
It does look like we have had a lucky escape but we are still unsure weather to buy or not?
On one hand you get properties at a cheap price ( i know the land registry can step in if to cheap) and what we are planning is a long term investment and we have already got a solicitor in Paphos for the buying process.
But on the other hand is there a chance with the bailout that we could lose some of our funds if not all ?

Regards a confused Brit.

Last edited by BLUEANDY5; Mar 17th 2013 at 3:56 pm. Reason: Missing text
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Old Mar 17th 2013, 3:57 pm
  #18  
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Default Re: Ex-pats and money in Cyprus banks

You really will need to see professional financial and legal advice BlueAndy5. You are talking about investing a considerable sum of money in a foreign country facing economic collapse. It's all too easy to be fooled by the dream of sun and sea as I'm sure others on this forum will testify.

This from the FT today:

Christopher Pissarides, a Nobel Prize-winning economist and chairman of the government’s economic advisory committee.

“If the law isn’t voted through, what happens will be much worse. There will be many bankruptcies and most Cypriots will lose everything because the banks will not reopen,” he said.

http://www.ft.com/cms/s/0/a2eac7d0-8...#axzz2NoREG1H6

If that really is the case, I'm afraid this will be just the first of many shocks to come for the island's residents. Cyprus is in the unenviable position that it isn't "too big to fail".

UPDATE: Guardian is reporting that "According to a draft copy of legislation, failing to hand over the levy would be a criminal offence liable to three years in jail or a 50,000 euro fine."

Last edited by Joe King; Mar 17th 2013 at 5:08 pm. Reason: update
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Old Mar 17th 2013, 5:53 pm
  #19  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by Joe King
UPDATE: Guardian is reporting that "According to a draft copy of legislation, failing to hand over the levy would be a criminal offence liable to three years in jail or a 50,000 euro fine."

I look forward to seeing them jail or fine a Russian ... should be really interesting.
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Old Mar 17th 2013, 6:49 pm
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by Mitzyboy
I look forward to seeing them jail or fine a Russian ... should be really interesting.


I'm not sure why they even need that threat - the money is just going to be taken at source from every bank account on Monday when the banks are shut. Avoidance is going to be impossible.
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Old Mar 17th 2013, 10:27 pm
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Default Re: Ex-pats and money in Cyprus banks

So mugging in Cyprus is a legal activity?

99k saved and you have 6682.50 stolen from you?

Nice place!
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Old Mar 17th 2013, 10:59 pm
  #22  
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Smile Re: Ex-pats and money in Cyprus banks

Originally Posted by 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.
O yes...that's right. The depositors guarantee scheme is to protect people’s deposited funds from bank failures and hence prevent runs on banks. This has nothing to do with the imminent collapse of banks and protecting depositors from losses.

Look mate call it what you want, if this "levy" doesn’t happen banks won’t open Tuesday for fear of a bank run. If that isn't a crisis in depositors confidence I don't know what is .
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Old Mar 17th 2013, 11:10 pm
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by BLUEANDY5
Thanks for the reply's guy's
It does look like we have had a lucky escape but we are still unsure weather to buy or not?
On one hand you get properties at a cheap price ( i know the land registry can step in if to cheap) and what we are planning is a long term investment and we have already got a solicitor in Paphos for the buying process.
But on the other hand is there a chance with the bailout that we could lose some of our funds if not all?
There isn't much upside to property there right now, as you say...if the same thing is cheaper next month why take the risk now? Even if the government vote through reform it still isn't a guarantee of stability.

If you where still going to buy take legal advise in the UK on how to skirt actually moving payment through Cyprus?
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Old Mar 17th 2013, 11:14 pm
  #24  
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Default Re: Ex-pats and money in Cyprus banks

Expats have called in The European Court Of Human Rights to see if this infringes basic human rights.
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Old Mar 17th 2013, 11:31 pm
  #25  
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Default Re: Ex-pats and money in Cyprus banks

Its just completely disgusting that they could even think about it. We changed our few pennies into Aussie dollars last year, we are not in Cyprus but Slovenia is also in trouble!

For anyone buying in Cyprus can you not just transfer straight into the owners account? That's what we done here!
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Old Mar 17th 2013, 11:45 pm
  #26  
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Default Re: Ex-pats and money in Cyprus banks

If the EU are prepared to seize deposits in savers bank accounts without warning why would anyone have any money in Spanish, Greek, Italian, Portuguese bank accounts from next week? If I were carrying out my own risk assessment for my savings................. EU banks of any description would be bottom of my list
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Old Mar 18th 2013, 5:21 am
  #27  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by booboo24
For anyone buying in Cyprus can you not just transfer straight into the owners account? That's what we done here!
But won't the owners simply get taxed instead? Surely they will want a price adjustment to reflect that possible scenario. I would wait until the dust settles before buying. There could be some real bargains ahead as many expats will over-react and try to jump ship without thinking it through.
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Old Mar 18th 2013, 8:17 am
  #28  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by Charismatic
O yes...that's right. The depositors guarantee scheme is to protect people’s deposited funds from bank failures and hence prevent runs on banks.

If that isn't a crisis in depositors confidence I don't know what is .
Just because you think it should apply, doesn't mean it does.

The guarantee is in place no matter the level of depositors' confidence. That's why it is called a guarantee.
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Old Mar 18th 2013, 8:21 am
  #29  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by booboo24
For anyone buying in Cyprus can you not just transfer straight into the owners account? That's what we done here!
Paying money straight into a seller's bank account is a very dangerous thing to do in any country and really bad advice.

Once the transfer is made, who is to say the seller will vacate the premises? What recourse do you have except a lengthy and costly legal battle in a foreign country?

Nobody would buy a property like that in the UK so why when we go abroad do we start acting differently?
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Old Mar 18th 2013, 8:22 am
  #30  
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Default Re: Ex-pats and money in Cyprus banks

Originally Posted by zygiman
Expats have called in The European Court Of Human Rights to see if this infringes basic human rights.
Let's hope someone somewhere sees that it shouldn't be the little people who pay for this mess.

UPDATE: It looks like the delay is over plans to maybe exclude smaller savers with deposits up to €100,000. Still not ideal, but that would certainly help a lot of ex-pats living on their savings.

Last edited by Joe King; Mar 18th 2013 at 8:38 am.
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