Author Topic: Money will be cut from accounts by Tuesday morning  (Read 3840 times)

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TrxiZ

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Money will be cut from accounts by Tuesday morning
« on: March 17, 2013, 19:47:13 PM »
Money will be cut from accounts by Tuesday morning

THE ONE-OFF levy on bank deposits agreed between Nicosia and international creditors will impact all Cypriot account holders.

In addition to Cypriot commercial and co-operative banks, Barclays, Russian Commercial Bank and Societe Generale, among others, would be affected.

“As we understand it, anything with credit will be subject to the levy, be it a deposit or current account,” bank sources said.

The Cyprus deal means the country’s savers, almost half of whom are believed to be non-resident Russians, are asked to pay up to 10 per cent of their deposits to raise some €5.8 billion for the government.

International lenders will put up around €10 billion to help the island pay back its debt.

People with less than €100,000 in Cypriot bank accounts will have to pay a one-time tax of 6.75 per cent, while those with more will have to pay 9.9 per cent.

Euphemistically dubbed a “solidarity levy,” what it amounts to is a haircut on deposits, economic analysts said.

Savers will be ‘compensated’ in the form of bank shares of an equal value to the amount contributed, finance minister Michalis Sarris told the state broadcaster.

In addition to the levy, Sarris said, a 20 to 25 per cent tax will be imposed on the interest on deposits.

And in return for emergency loans, Cyprus additionally agreed to increase its corporate tax rate by 2.5 per cent to 12.5 per cent.

The deal was reached after late-night discussions in Brussels with the International Monetary Fund (IMF).

In return for the €10 billion bailout, Cyprus has been asked to reduce its deficit, shrink its banking sector and increase taxes.

Bank sources said a run on bank ATMs started from Friday night – while the Eurogroup was in progress –peaking yesterday morning as soon as news broke from Brussels.

“The ATMs are running out of cash,” a source said.

The frenzy of withdrawals was triggered by savers likely thinking that by reducing their bank balance they would reduce their taxable amount.

However understandable, it was probably an exercise in futility, because the taxable amount will apply retroactively, from the moment the deal was struck in Brussels.

Joerg Asmussen, a member of the executive board of the European Central Bank, said the Cypriot parliament would have to legislate on the measure over the weekend and the tax, which he said had already been frozen in deposits, would be removed before banks opened on Tuesday morning.

He said also the Cypriot Central Bank had done “contingency planning” for the event of a run on the nation's banks after the announcement of the extraordinary measures.

Asmussen said Cyprus's banks would have to continue receiving funding the Central Bank of Cyprus's Emergency Liquidity Assistance facility- an expensive lending program -but would be able to access normal ECB financing after they had been recapitalized.

The ECB official justified the measure by saying it broadened the number of people who will shoulder the burden of the bailout. Without the measures, he said, much of it would fall on Cypriot taxpayers; by going after all large deposit holders – many of whom are Russian or British – outsiders would help fund the rescue.

Greek depositors would not be hit, Asmussen said. Cypriot bank branches would be “ring fenced” and sold off to a Greek bank at a later date.

Before Tuesday – when the banks reopen after an extended weekend – the government hopes to pass three bills in total – one on the corporate tax, another on the levy on deposits and a third on the tax on interest on deposits.

A House plenum was expected to be convened today or tomorrow at the latest; House Speaker Yiannakis Omirou was forced to cut short a visit to London and return to the island last night.

The urgency of the matter mobilised the entire state machinery. Technocrats from the finance ministry, the Central Bank and officials from the Attorney-general’s office were yesterday summoned to the Finance Ministry to begin drafting the items of legislation.

The Association of Cyprus Banks also convened.

The Mail was told also that, as early as Thursday evening, Attorney-general Petros Clerides got a call from Brussels asking him to start working on the bills.

Sources close to the Bank of Cyprus said they had received verbal instructions to suspend internal internet banking.

To avert a run on the co-operative banks the Co-operative Central Bank instructed outlets to lock their systems to prevent transactions. Many branches remained closed for the day; co-operatives are normally open for business on Saturdays.

http://www.cyprus-mail.com/bailout/money-will-be-cut-accounts-tuesday-morning/20130317

TrxiZ

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Re: Money will be cut from accounts by Tuesday morning
« Reply #1 on: March 17, 2013, 19:52:35 PM »
This is a great danger for every citizen of cyprus. (and sooner or later of all around europe)

control over money means control over the people complete governmental and bankrupt oppression.
Imagine you have to pay what bankers have been done and until NOW not held accountable for their actions.

the citizens the poor people the ones that do not have enough maybe worked all their life are going to pay the price for this now?

is that serious - I mean ..?

Is that the European Spirit - all people of europe united under one flag?
Well if it is, leave the EURO - go far far away from this so called """""FREEDOM"""""
« Last Edit: March 17, 2013, 19:55:03 PM by T®²³ »

TrxiZ

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Re: Money will be cut from accounts by Tuesday morning
« Reply #2 on: March 17, 2013, 20:00:07 PM »
there is an interessting GiFiles on cyprus.
RE: analysis for comment - cyprus
http://search.wikileaks.org/gifiles/?viewemailid=5325559

enrica

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Re: Money will be cut from accounts by Tuesday morning
« Reply #3 on: March 17, 2013, 21:13:35 PM »
I still... Have to shape a comment on this Absurd decision!

You ... Put your money in the bank to make them "secure" and they Totally violate your property rights!

These reported facts are completely anti democratic stuff.

... What is happening now?
ALL the Citiziens are Of Course retiring their money from the banks.

This is definitively going to hurt anyone

enrica

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Re: Money will be cut from accounts by Tuesday morning
« Reply #4 on: March 17, 2013, 21:17:47 PM »
This is a great danger for every citizen of cyprus. (and sooner or later of all around europe)

control over money means control over the people complete governmental and bankrupt oppression.
Imagine you have to pay what bankers have been done and until NOW not held accountable for their actions.

the citizens the poor people the ones that do not have enough maybe worked all their life are going to pay the price for this now?

is that serious - I mean ..?

Is that the European Spirit - all people of europe united under one flag?
Well if it is, leave the EURO - go far far away from this so called """""FREEDOM"""""

This is exactly my same worry.
Add that the EU states are trying to push Citiziens to use more and more the electionic money: if now they decide they can put their Hands in Our Pokets (!!!) each time they want this has become a CAGE!
None is nomore allowed to self-control their own money.
This looks like slavery

TrxiZ

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Re: Money will be cut from accounts by Tuesday morning
« Reply #5 on: March 17, 2013, 21:37:41 PM »
its the same systematic way like telling the people only to use electronic payment methods.
or you are only able to pay up to 300€ in notes the rest only via E-Cards.

this is the worst case of surveillance - allways trackable what you are doing what you like and what you buy.

the banks in cyprus act like a dictator the government also has failed. this is not their money. this is not their right.
and people are now available to see what happens to other countrys.

this will not stop in greece nor in cyprus.

**
well i needed to edit this a bit. Im guessing that they will not be aware of a bankrun in cyprus even if the banks are longer closed. people that can not access their money will access the money on that single day they can.
« Last Edit: March 17, 2013, 22:43:29 PM by T®²³ »

enrica

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Re: Money will be cut from accounts by Tuesday morning
« Reply #6 on: March 19, 2013, 10:39:45 AM »
Yes exactly.

I'm currently reading the info on this Cyprus case these days and I've seen journals reporting that even the US is perplexed about the method that the Cyprus' Govt has decided to use to solve their debt.

I was wondering that for example here in Italy Bersani has suggested to make all the payments over 300 euros via "treaceable means" (bancomat, cards, other). It actually means that all the citiziens must have a Bank account.

The problem is that since when we are in EU we don't have the Bank of the State anymore. We only have Privates that earn their own interests.

Worst: now Cyprus sets up a very Dangerous precedent: the Govt imposes its hands on the Cypriote citiziens' accounts using their money.
What does this mean?
That whatever State now if it has problems can decide to take the Citizien's money without any limit?!

Where is the Right of Property, the right of using my own property if "you, State" decide that I MUST hold my money where you want (and it's NOT the Bank of the State but a Private one!), decide that you can take my money whenever you want... Even if it's not my fault if some politicians have played with the money of the State creating a debt ?

... I think Cyprus is setting a very dangerous precedent.