Cyprus

[BlackPuddingBertha]

Just wondering whether any/many people here will be directly affected by the obligatory haircut that was proposed for depositors with Cypriot banks this weekend?

Apparently a lot of the money in Cyprus is actually from Russian depositors, and this may have a knock-on effect on the Thai economy if they are now tempted to move their deposits in this direction. Will anyone here be re-thinking their deposit plans in the light of these recent events?

Personally I have never had much confidence in small countries like Iceland and Cyprus that have no visible means of support and I have always discounted the idea of depositing money with them.

[muratremix]

You think Russians will invest money in Thailand where financial restrictions are very strict compared to other countries like singapore, hong kong etc? No way.

[BlackPuddingBertha]

It depends on what you mean by "invest". I suspect that most Russians with money in Cyprus put it there because not many questions were asked and interest rates are fairly high. Also for other cleanliness aspects.

In this respect Thailand is rather similar. I think that Singapore would be less attractive to them.

[muratremix]

Can you explain this haircut in Cyprus?

[KHR1010]

Can you explain this haircut in Cyprus?

http://www.reuters.com/article/2013/03/17/us-cyprus-parliament-idUSBRE92G03I20130317

[kblaze]

There will likely be some bolstering of capital inflow into Asia as depositors in Europe who have no interest in worrying about contagion move their money. So Thailand could see some residual deposit gain

[Maestro]

Putin brands Cyprus saving levy as ‘unfair’

Published time: March 18, 2013 09:40

Edited time: March 18, 2013 12:36

The Russian leadership has lashed out at Cyprus’ plan to tax bank deposits. President Vladimir Putin called the initiative ‘unfair’, while Prime Minister Dmitry Medvedev drew comparisons with illegal forfeit.

...

At the end of 2012, Russian companies had an estimated $19 billion in deposits with Cypriot banks, according to Moody's. This makes up 25% of all deposits on the island, while 70% are held by the citizens of the European Union and the United Kingdom.

Read more: http://rt.com/business/putin-cyprus-levy-unfair-424/

[Maestro]

Crisis Bailout Backfires: Depositors fear loss of savings in Cyprus debt payoff

Published time: March 17, 2013 21:29

Edited time: March 18, 2013 12:28

Cyprus has delayed a vote on its controversial bank deposit levy until Tuesday. The new tax would make its citizens shoulder a 12.5-percent crisis tax on savings larger than €100,000, with a tax of 3 percent on smaller deposits.

The Cypriot government has been discussing the measure with its European creditors, Reuters reported citing an anonymous source who is close to talks.

To counterbalance the measure, the government proposed to increase the tax on large sums to 12.5 per cent from the originally proposed 9.9, the source said.

Read more: http://rt.com/business/cyprus-bailout-bank-tax-deposits-401/

[Loptr]

I can just imagine the US Fed and ECU wringing their hands at the prospect of implementing this little "seizure" of capital as a panacea for solving their fiscal problems. Even Switzerland has not ruled out negative interest rates on deposits or a "wealth tax" on deposits. Beware lest this program come to your home country.

[mccw]

Everyone should take all their cash out and buy gold

Non wait.... Hold on a couple of months I need to sell my house and get my gold before the rush starts haha

Please a little more time money masters

[Gulfsailor]

Well. As far as I can see there are only a limited number of options;

1 no bailout, bank goes bust, depositors might loose a lot of money. Smaller deposits may be guaranteed, which will then have to be paid by cypriotic tax payers.

2 European bailout. Most money in this crappy bank is not from eu citizens or Cyprus residents. Why should a. German, French or Finnish taxpayer be paying for a crappy bank holding mainly Russian money.

3 use a percentage of the actual depositors money for the bailout. They have a lot more to lose if bank goes bust. And in this case the large depositors are Russians anyway. Basically these depositors will then own the bank. May get it and more back later when economy improves.

[Maestro]

18 March 2013 Last updated at 22:36 GMT
Eurozone ministers urge Cyprus to shield small savers

Finance ministers from the eurozone have asked Cyprus to reduce the burden on small investors from a proposed levy on savings, linked to a bailout.

Plans for a one-off tax of 6.75% on savings up to 100,000 euros (£86,000; $130,000) have outraged Cypriots.

Banks in Cyprus are to remain closed until Thursday, as efforts to revise an international bailout package continue.

Read more: http://www.bbc.co.uk/news/world-europe-21839324

[Naam]

Well. As far as I can see there are only a limited number of options;

1 no bailout, bank goes bust, depositors might loose a lot of money. Smaller deposits may be guaranteed, which will then have to be paid by cypriotic tax payers.

2 European bailout. Most money in this crappy bank is not from eu citizens or Cyprus residents. Why should a. German, French or Finnish taxpayer be paying for a crappy bank holding mainly Russian money.

3 use a percentage of the actual depositors money for the bailout. They have a lot more to lose if bank goes bust. And in this case the large depositors are Russians anyway. Basically these depositors will then own the bank. May get it and more back later when economy improves.

[MrWorldwide]

Just not sure what was wrong with the other Cyprus thread - did we really need a second ?

[Pakboong]

IMO, this matter is huge and has many cause and affects but Russia announcing last week that foreign banking within Russia is not allowed has to play a big part. This could be a move similar to Hitler nationalizing her banks to stave of the failures of the Weimar Republic in 1933. It is also likely a canary in the coalmine check for how much the people will take. The IMF and the EU could easily bail out Cyprus. This is a testor. The banksters will go to great lengths to avoid the money coming out of their own hides. Cyprus banks hold deposits which are currently over 10 times their annual GDP.

This act, will of course, have a rippling effect throughout the Western world to say the least.

[ajarnpot]

IMO, this matter is huge and has many cause and affects but Russia announcing last week that foreign banking within Russia is not allowed has to play a big part. This could be a move similar to Hitler nationalizing her banks to stave of the failures of the Weimar Republic in 1933. It is also likely a canary in the coalmine check for how much the people will take. The IMF and the EU could easily bail out Cyprus. This is a testor. The banksters will go to great lengths to avoid the money coming out of their own hides. Cyprus banks hold deposits which are currently over 10 times their annual GDP.

This act, will of course, have a rippling effect throughout the Western world to say the least.

Interesting statement.

Wrt "The IMF and the EU could easily bail out Cyprus." Could they really, I mean could the EU or IMF really bail out Cyprus and deal with the results?

[dave111223]

P.S. Thanks IMF/ECB for driving the price over $50

[BlackPuddingBertha]

Just not sure what was wrong with the other Cyprus thread - did we really need a second ?

This thread was started before the other one. And it makes more sense.

[Pormax]

Can you explain this haircut in Cyprus?

http://www.reuters.com/article/2013/03/17/us-cyprus-parliament-idUSBRE92G03I20130317

If you read my post placed at 15.05 yesterday and unfortunately 'locked' i. It will explain what has happened and my feelings about it..

[Pormax]

Just not sure what was wrong with the other Cyprus thread - did we really need a second ?

I agree, Cannot understand why my post was locked so soon after posting.

I believe it was not only news worthy but important for people to understand the possible dip in the value of the Euro against the Baht.

[BlackPuddingBertha]

I see no locked threads about Cyprus. Which sub-forum was it in?

[churchill]

A 3-Step Solution For Fixing Cyprus That's Far More Elegant Than The Current Plan

Read more: http://www.businessinsider.com/walking-back-cyprus-2013-3#ixzz2NySeQZ20

[davejones]

You think Russians will invest money in Thailand where financial restrictions are very strict compared to other countries like singapore, hong kong etc? No way.

They already have lots of money invested here, especially in property.

[Pakboong]

IMO, this matter is huge and has many cause and affects but Russia announcing last week that foreign banking within Russia is not allowed has to play a big part. This could be a move similar to Hitler nationalizing her banks to stave of the failures of the Weimar Republic in 1933. It is also likely a canary in the coalmine check for how much the people will take. The IMF and the EU could easily bail out Cyprus. This is a testor. The banksters will go to great lengths to avoid the money coming out of their own hides. Cyprus banks hold deposits which are currently over 10 times their annual GDP.

This act, will of course, have a rippling effect throughout the Western world to say the least.

Interesting statement.

Wrt "The IMF and the EU could easily bail out Cyprus." Could they really, I mean could the EU or IMF really bail out Cyprus and deal with the results?

No more or less than the US Federal Reserve does to the tune currently at $85 billion per month. The EU will likely back off, this will cause a huge impact on Russia. The former KGB does all their banking in Cyprus. The implications are huge and I am surprised that such a reckless solution was proposed. Not counting the deposits by Russian Mafia, the legit Russian deposits stand at roughly $30 billion.

[davejones]

P.S. Thanks IMF/ECB for driving the price over $50

This sounds like something that will fall apart spectacularly one day.

[Maestro]

Cyprus lawmakers reject bank tax; bailout in disarray

By Michele Kambas and Karolina Tagaris

Published on March 19, 2013

NICOSIA, March 19 (Reuters) - Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing euro zone efforts to rescue the latest casualty of the currency area's debt crisis into disarray.

The vote by the small state's legislature was a stunning setback for the 17-nation euro zone, after lawmakers in Greece, Portugal, Ireland, Spain and Italy had repeatedly accepted unpopular austerity measures over the last three years to secure European aid.

The rejection, with 36 votes against, 19 abstentions and one absence, brought the east Mediterranean island, one of the smallest European states, to the brink of financial meltdown.

Read more: http://www.cyprus-mail.com/cyprus/cyprus-lawmakers-reject-bank-tax-bailout-disarray/20130319

Cyprus Mail 2012-03-19

[meatboy]

wait and see what rate the euro vs the bht.on bbc.this morn.4am the £ was trading at 16.76.up over1.5cents.

monday the £ vs bht=44.32 going up.

euro vs bht37.90.going down

yesterday £ dropped vs bht.=43.91.euro vs bht =37.71

today only one way ?

cyprus is only a small island,gremlins at work.

[BlackPuddingBertha]

The interesting question is what on earth can the EU do now? They've cleverly given everyone clear warning well in advance that they wont honour the deposit protection, without bothering to make sure than their "solution" was either acceptable or accepted. The two biggest Cypriot banks are insolvent and if the banks ever open their doors again without some sort of agreement being reached beforehand then everyone with a Euro on deposit anywhere in Cyprus will be clamouring to withdraw it. I know I would.

What a mess. And what a bunch of incompetent tossers organising it all.

OK, Cyprus is completely unimportant in itself and no one would even blink if it disappeared from the map, but what about the knock-on effect on all the other dodgy third-rate Euro countries? Will there be bank runs there? Sounds likely to me. If I had cash in a Greek bank I would be at the ATM right now whilst they still work.

[meatboy]

wait and see what rate the euro vs the bht.on bbc.this morn.4am the £ was trading at 16.76.up over1.5cents.

monday the £ vs bht=44.32 going up.

euro vs bht37.90.going down

yesterday £ dropped vs bht.=43.91.euro vs bht =37.71

today only one way ?

cyprus is only a small island,gremlins at work.

euro down to 37.38 vs bht. £ down 43.88. how many more need bailing out.

could be the uk are going to see a big influx of euro's.roll up roll up who wants to buy some euro's

[Naam]

wait and see what rate the euro vs the bht.on bbc.this morn.4am the £ was trading at 16.76.up over1.5cents.

monday the £ vs bht=44.32 going up.

euro vs bht37.90.going down

yesterday £ dropped vs bht.=43.91.euro vs bht =37.71

today only one way ?

cyprus is only a small island,gremlins at work.

euro down to 37.38 vs bht. £ down 43.88. how many more need bailing out.

could be the uk are going to see a big influx of euro's.roll up roll up who wants to buy some euro's

$ down to THB 29.05