Gordon Barlow

I'm a longtime resident of the Cayman Islands, an Offshore rival of Cyprus's (although the specialities are different), and a former Manager and sometime Director of Cayman's Chamber of Commerce. I gather that ambulance-chasers from several of the rivals have been soliciting business among Cyprus's clients. That seems a bit tacky, actually, but it's natural enough, I suppose. I am not one of them, let me hasten to say.

I'm completely retired from tax-haven involvement, but having also lived in Nassau and New Hebrides (now Vanuatu), and done business with several others in my time, I remain interested in what's going on Offshore generally. Last week I wrote a short essay ("Cyprus and Cayman") on my blogsite, noting that Cayman is vulnerable in much the same way as Cyprus was.

So. From this distance, Cyprus's Offshore sector seems utterly destroyed, and much of its general economy too. Can you possibly recover from blows such as full exchange control and confiscation of clients' money? Wouldn't your Republic (I presume Northern Cyprus isn't affected) be better off becoming like Iceland - ditching the Euro and the EU both? Might it happen?

zygiman

There are many people who would like Cyprus to go back to the Cyprus Pound. This was a high value currency based on the large gold reserves it once had. Sadly, these gold reserves hve long since been sold.

The Cyprus Pound to come back is likely to have a 40% devaluation compared to the Euro.

Staying in the Euro or reverting back to the Cyprus Pound are both painful choices.

One thing is going to happen one day for sure, the Euro Ponzi scheme will collapse one day, just like Bernie Maddoff.

Maybe Cyprus should leave the Euro now?

EMR

Reports in UK press of the Cyprus police stopping boats leaving to check for illegal transfers of cash and substantial amounts being found.
Also one Russian investor who was approached and for a cost of E200,000 ways could be found to transfer his money out of Cyprus.
The vultures are definetly sensing blood.