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Thread: Cyprus Bailout: Depositors taxed 9.9%

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    Politics.ie Member seabhcan's Avatar
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    Default Cyprus Bailout: Depositors taxed 9.9%

    Cyprus Secures Bailout Deal - WSJ.com

    In Cyprus they burn the depositors. A once off tax on deposits of 9.9% will be applied to help pay back bond holders

    An initial assessment of Cyprus's finances in January concluded it needed more than €17 billion, including €10 billion just to stabilize its banks. That would have been an unmanageable burden for the island, whose annual economic output is less than €18 billion and shrinking.
    The bailout will be close to 100% of GDP, like ours.

    If we'd put a 10% tax on deposits on the night of the guarantee, it would have raised 40 billion. Good idea?

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    Politics.ie Member seabhcan's Avatar
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    They are also putting up corporation tax from 10% to 12.5%. Interesting.

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    Politics.ie Member Sync's Avatar
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    Jesus. This will kill deposit's in the country. Utterly insane. You are taking around 7% of the wealth out of the country. And this isn't against millionaires exclusively, if you as a cypriot have scrimped and saved €20000 over the years, saved it in a cypriot bank, you are going to have €1350 taken away from you. Gone.

    I need this explained to me. Russians have 20 billion in deposits. They will lose at least 1.34 billion (probably 2 billion). Why THE F&CK will those people leave their money in there after it gets taken next week?

    The govt have guaranteed bank runs next week. And this isn't some rubbish rumour that scares people, you have concrete evidence that your money is not safe in the state's banks. You're now a fool if you're leaving your money there.

    The legality will also be checked. They haven't introduced the law yet, but I'm now prevented from taking my money out?

    Cyprus have announced they're closed for business.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    Politics.ie Member Franzoni's Avatar
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    Mad stuff......have to agree with the Sync's post above....Cyprus have pulled down the shutters....
    What the imagination can't conjure, reality delivers with a shrug

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Sync View Post
    Jesus. This will kill deposit's in the country. Utterly insane. You are taking around 7% of the wealth out of the country. And this isn't against millionaires exclusively, if you as a cypriot have scrimped and saved €20000 over the years, saved it in a cypriot bank, you are going to have €1350 taken away from you. Gone.

    I need this explained to me. Russians have 20 billion in deposits. They will lose at least 1.34 billion (probably 2 billion). Why THE F&CK will those people leave their money in there after it gets taken next week?

    The govt have guaranteed bank runs next week. And this isn't some rubbish rumour that scares people, you have concrete evidence that your money is not safe in the state's banks. You're now a fool if you're leaving your money there.

    The legality will also be checked. They haven't introduced the law yet, but I'm now prevented from taking my money out?

    Cyprus have announced they're closed for business.
    I guess you'd have to check the fine print. The tax might only apply to longer term deposits, rather than current accounts - meaning it you are prevented from immediate withdrawal anyway.

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    Quote Originally Posted by Sync View Post
    Jesus. This will kill deposit's in the country. Utterly insane.

    I need this explained to me. Russians have 20 billion in deposits. They will lose at least 1.34 billion (probably 2 billion). Why THE F&CK will those people leave their money in there after it gets taken next week.

    The govt have guaranteed bank runs next week. And this isn't some rubbish rumour that scares people, you have concrete evidence that your money is not safe in the state's banks. You're now a fool if you're leaving your money there.

    The legality will also be checked. They haven't introduced the law yet, but I'm now prevented from taking my money out?
    It doesn't appear to be yours - well not until Tuessday at the earliest.
    I suppose there is a risk for all depositors in the EU that this "solution" could be applied in future bailouts. This could lead to withdrawing of deposits from other EU banks in the short term.

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    Politics.ie Member Franzoni's Avatar
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    Quote Originally Posted by BrightDay View Post
    It doesn't appear to be yours - well not until Tuessday at the earliest.
    I suppose there is a risk for all depositors in the EU that this "solution" could be applied in future bailouts. This could lead to withdrawing of deposits from other EU banks in the short term.
    Exactly a run on the banks...the very reason for a lot of this austerity and the thing were supposed to avoid at all costs.........

    Another ill thought out financial experiment by the Germans and the ECB on a small country who can't fight back....
    What the imagination can't conjure, reality delivers with a shrug

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    Politics.ie Member Vega1447's Avatar
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    I expect that the Russian and other high rollers have long since pulled their money out.
    This move has been predicted for some time.

    Or have account withdrawals been blocked preemptively weeks in advance?
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    Dylan2010
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    it seems unfair if there are no minimum levels. If it was deposits over a 100K then why not? as I assume they had some general deposit "insurance" up to a certain point.
    In the future it should not be possible for depositors to chase yield and have any losses socialised, simple moral hazard

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    Politics.ie Member Vega1447's Avatar
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    Quote Originally Posted by Franzoni View Post
    Exactly a run on the banks...the very reason for a lot of this austerity and the thing were supposed to avoid at all costs.........

    Another ill thought out financial experiment by the Germans and the ECB on a small country who can't fight back....
    In your wisdom, what *should* those mean ole Germans have done?
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