Go Back  British Expats > Living & Moving Abroad > Europe > Cyprus
Reload this Page >

Thinking of moving to Cyprus, is it a bad time?

Thinking of moving to Cyprus, is it a bad time?

Closed Thread

Old Mar 26th 2013, 12:05 pm
  #16  
Banned
 
Joined: Mar 2013
Location: In a small village in Dartmoor, Devon
Posts: 70
Davidindevon is an unknown quantity at this point
Default 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.
Davidindevon is offline  
Old Mar 27th 2013, 1:46 pm
  #17  
Melbourne - NE suburbs
 
DownUnderPaddy's Avatar
 
Joined: Jun 2008
Posts: 1,032
DownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond reputeDownUnderPaddy has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

bleak.

http://m.theage.com.au/world/cypriot...327-2gumm.html
DownUnderPaddy is offline  
Old Mar 28th 2013, 7:08 am
  #18  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default 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.
Michael is offline  
Old Mar 28th 2013, 7:35 am
  #19  
BE Enthusiast
 
Joined: Nov 2008
Location: Cyprus
Posts: 367
Veronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by Michael View Post
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.
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 ofwhat 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.
Veronica-K is offline  
Old Mar 28th 2013, 7:57 am
  #20  
Just Joined
 
Joined: Mar 2013
Posts: 11
goggles is an unknown quantity at this point
Default 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.
goggles is offline  
Old Mar 28th 2013, 8:00 am
  #21  
 
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,054
Domino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond reputeDomino has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by goggles View Post
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.
The Russians learnt a long while ago to do not talk

There will be retribution, Putin's mafia will not take this lying down........
Domino is offline  
Old Mar 28th 2013, 8:08 am
  #22  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by Veronica-K View Post
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.
That is true but believe it or not, Laiki branches in other countries in Europe were not closed. According to the news, there is a possibility that the Russians and other foreigners were able to pull their money out by using the European branches.

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.
Michael is offline  
Old Mar 28th 2013, 8:15 am
  #23  
BE Enthusiast
 
Joined: Nov 2008
Location: Cyprus
Posts: 367
Veronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

In the Laiki bank everything over 100k is being taken not just 40%.
Veronica-K is offline  
Old Mar 28th 2013, 8:38 am
  #24  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by Veronica-K View Post
In the Laiki bank everything over 100k is being taken not just 40%.
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.
Michael is offline  
Old Mar 28th 2013, 8:46 am
  #25  
BE Enthusiast
 
Joined: Nov 2008
Location: Cyprus
Posts: 367
Veronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond reputeVeronica-K has a reputation beyond repute
Default 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.
Veronica-K is offline  
Old Mar 28th 2013, 8:48 am
  #26  
Just Joined
 
Joined: Mar 2013
Posts: 11
goggles is an unknown quantity at this point
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by Domino View Post
The Russians learnt a long while ago to do not talk

There will be retribution, Putin's mafia will not take this lying down........
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.
goggles is offline  
Old Mar 28th 2013, 8:59 am
  #27  
Lost in BE Cyberspace
 
Michael's Avatar
 
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Michael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond reputeMichael has a reputation beyond repute
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by goggles View Post
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.
I was just watching the news and someone representing the Cyprus central bank indicated that some money was taken out of other European branches but the amount was in the millions and not billions. However until accounting is done, nobody knows for sure.

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.
Michael is offline  
Old Mar 28th 2013, 10:08 am
  #28  
Just Joined
 
Joined: Mar 2013
Posts: 11
goggles is an unknown quantity at this point
Default Re: Thinking of moving to Cyprus, is it a bad time?

Originally Posted by Michael View Post
I 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.

I suspect their will have been some complicity , you can be sure as well that they took the cash beyond the EU grasp.
goggles is offline  
Old Mar 28th 2013, 4:29 pm
  #29  
Forum Regular
 
Joined: Jun 2012
Posts: 228
piero is an unknown quantity at this point
Default 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
piero is offline  
Old Mar 28th 2013, 4:34 pm
  #30  
Forum Regular
 
Joined: Jun 2012
Posts: 228
piero is an unknown quantity at this point
Default 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
piero is offline  

Contact Us Archive Advertising Cookie Policy Privacy Statement Terms of Service