SO HERE AND NOW

Conservative Political Views

THE BLAZE by JONATHON M. SEIDL

Cyprus Has Been Bailed Out: Here’s What You Need to Know

Mar. 25, 2013 7:43am

BRUSSELS (TheBlaze/AP) — Authorities from Cyprus and the so-called troika of international lenders – the European Commission, the European Central Bank and the International Monetary Fund – reached agreement on a bailout loan for the country of up to 10 billion euros. A look at key parts of the deal:

-The agreement doesn’t need to be voted on by the Cyprus parliament, explains Business Insider.

-Cyprus had to come up with 5.8 billion euros somehow to secure the bailout.

-Depositors in the country’s second-largest bank, Laiki, with accounts of more than 100,000 euros will lose an unspecified amount of their money. The move is expected to yield 4.2 billion euros overall – or most of the needed amount.

-Reuters describes it as a “raid” on those above-100k euro accounts:

Deposits above 100,000 euros in both banks, which are not guaranteed under EU law, will be frozen and used to resolve Laiki’s debts and recapitalize Bank of Cyprus through a deposit/equity conversion.

The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said.

-This is what depositors with more than 100k euros reportedly saw when they logged in to the UK version of the Laiki bank website (from Twitter user Tukxi Piaggio Ape):

Cyprus Bailout Explained

(Twitter user Tukxi Piaggio Ape)

-The remainder of the money will come from tax increases and privatizations.

-Cyprus had to agree to restructure its banking sector, which is unusually large for the size of its economy.

March 25, 2013 - Posted by | Home | , , , ,

2 Comments »

  1. Meg, if you are serious about wanting to know the answers to your questions, I’ll be happy to supply them. It won’t be a short response, and I cannot get to it until tomorrow. Let me know if you want me to answer.

    Like

    Comment by duckyack | March 30, 2013

  2. Is what they have done legal? The first bailout plan, rejected by Cyprus, specified a 9.9% “tax” on all accounts over 100K Euros. Even raising that to cover the protection of smaller accounts, no one would lose all their money. Now it looks as if Laiki customers will lose 80-100% of their money, Bank of Cyprus customers lose 30% and everyone else loses nothing. While I appreciate that if your bank goes bust you risk losing money, in this case Cyprus has decided to cause this bank to go bust, when the original bailout plan did not require it to. They have moved all its insured deposits to another bank, and are to utilize the non-insured deposits of Laiki customers to pay the debts not only of Laiki but the other bank, Bank of Cyprus, and other Cypriot banks. This is simply theft. Surely there is no law that says they can do this? You put your money in a bank on Trust, they are Trustees of your money. The fact that all your deposits aren’t insured does not change that. It doesn’t give them the right to steal it to suit their own purposes – they still have a responsiblity to you. It seems we are living in a world where might makes right, but is there not any legal grounds for those customers who’ve had their life savings stolen to get together and bring a class action to challenge the legality of it?

    Like

    Comment by Meg Allen | March 29, 2013


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Political Vel Craft

Veil Of Politics

Political Film Blog

money, power, injustice, sex, violence, propaganda, anti-fascism...

@AMeansstotheend

Fighting Against Government Harassment

Constitutional Clayton

Politics surrounding the Constitution

mike884

Smile! You’re at the best WordPress.com site ever

John Groves Art Stuff

Art from johngrovesart

swissdefenceleague

Swiss Defence League

the seaton post

A little bit of this and a little bit of that

Jericho777's Blog

Correcting Misinformation!

%d bloggers like this: