Govt confiscates 30% of all large bank deposits in Cyprus

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It’s now official: Governments can decide you have too much in bank deposits and, without your consent or even a vote by your elected representatives, simply confiscate steal a percentage of your savings.
Cyprus has just shown rapacious governments across the world how easily it can be done.
After a week of feverish negotiations, the government of Cyprus — a small island country in the Eastern Mediterranean Sea and a member of the European Union (EU) — finally made a deal with the Devil the grand poobahs of the Eurozone, thereby bringing an end, for now, to the financial crisis that had plunged the small country (population: about a million) into riots and chaos.
The Eurozone is an economic and monetary union of 17 EU member states that have adopted the euro (€) as their common currency and sole legal tender.
The crisis began on March 16, 2013, when the Eurozone told the people of Cyprus that as much as 10% of the deposits in their personal bank accounts would be levied confiscated, in exchange for a $13 billion (€10 billion) bail-out of their heavily indebted country to avoid bankruptcy and a banking collapse.
But the proposed levy was resoundingly rejected by the Cypriot parliament. Meanwhile, to prevent a bank run, banks in Cypriot were closed (a “bank holiday”!) and ATM withdrawals limited to €100 ($128) a day.
Jan Strupczewski and Michele Kambas report for Reuters, March 25, 2013, that mere hours before the deadline to avert a collapse of the Cypriot banking system, Cyprus President Nicos Anastasiades clinched a last-ditch deal with the three-headed money lender (EU, European Central Bank, and International Monetary Fund) in return for a €10 billion bailout.
Without a deal, Cyprus’s banking system would have collapsed and the country could have become the first to crash out of the euro currency.
Here’s the deal:

  • In return for an EU loan of €10 billion, Cyprus must raise €5.8 billion from its banking sector by:
  • Shutting down the country’s second-largest bank, the largely state-owned Popular Bank of Cyprus (PBC), also known as Laiki. Thousands of jobs at PBC will be terminated; senior bondholders in PBC will be wiped out.
  • Shifting all PBC deposits below €100,000 ($128,630) to the Bank of Cyprus (BoC) to create a “good bank.”
  • Freezing deposits of more than €100,000 in both banks (PBC and BoC), which are not guaranteed under EU law. About 30% of those deposits will be used confiscated to “resolve” PBC’s debts and recapitalize Bank of Cyprus through a deposit/equity conversion. Those uninsured deposits total €38 billion (more than half of the €68 billion total bank deposits in Cyprus). Eurogroup chairman Jeroen Dijssebloem said the raid on uninsured  depositors is expected to raise €4.2 billion.
  • No across-the-board levy or tax would be imposed on deposits in Cypriot banks, although the hit on large account holders in the two biggest banks is likely to be far greater than initially planned.

IMF chief Christine Lagarde said the agreement was “a comprehensive and credible plan” that addresses the core problem of the banking system and “provides the basis for restoring trust in the banking system, which is key to supporting growth.” Blah, blah, blah.
German Finance Minister Wolfgang Schaeuble said the Cypriot parliament would not need to vote on the new scheme, since they had already enacted a law on procedures for bank resolution. Blah, blah, blah.
Some Cypriots are wary about the deal. Georgia Xenophontos, 23, a hotel receptionist in the capital, Nicosia, sensibly asked, “How long will it last? Why should anyone believe anything this government says?”
But many in the capital appeared intent on enjoying a sunny holiday morning, drinking coffee at pavement cafes and watching camera crews filming people drawing money from bank machines.


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0 responses to “Govt confiscates 30% of all large bank deposits in Cyprus

  1. This crap is going to touch off a global bank panic, and that isn’t going to be good for anybody.

    • It won’t be good for most of us, but I remember reading somewhere that the banksters make more money when blood is running in the streets. They can buy things for pennies on the dollar. They cause the panic and then they milk it.

  2. Libs are salivating over this I bet.

    • “Tax the rich, feed the poor/ Until there are no rich no more!”– heavy, pass the bong, maaan! (Hey, left/libtards, the ’60s called– its wants its dumb ideas back.)

  3. So let me get this straight, we are relying on the experts (term used loosely) who created the mess to now get us out of the mess by punishing those who had no idea what was going on. They didn’t see this coming – yeah right.
    The Cyprus banks are closed until later this week, lord knows how the people are managing to survive, I’m hoping that there will be a public backlash against the banks. It’s time to boot out the satanic bankers and create a wholesome, government-controlled issuance of money system that does not reduce the masses to slavery. Lincoln had his greenbacks and Britain had the Bradbury pound around the early years of the twentieth century – it works and it puts the parasites out of a job and back into the gutter where they belong.!%2030:11:12.pdf
    These accumulated debts can never be paid off and should be cancelled. Banks never lose, and they don’t lose their homes or their livelihoods, and they never get done for fraud, except for the ones in Iceland. These banks do not create prosperity, they take it away.

  4. This was all carefully planned. laGarde has been for confiscation for a long time. Obama is already taking money from federal employees retirement accounts. Next is your 401Ks and IRAs and then savings, the bills are in the making and the Dems are behind it all.

  5. Remember Obama has been telling us for years, he wants us to be more like Europe. Then his turning our rights over to the corrupt UN and their Agenda 21 says the rest.

  6. I may be wrong , but sometime yesterday I heard 40%. Just wondering !

    • I’ve heard 30% but it’s still bad. They’ll start with one number, and when that’s accepted they’ll go higher, so 40% is probably coming.

  7. Thank you Dr. Eowyn for this incredible post, how a government literally steals money from its citizens. Absolutely evil!

    • They’ve always done it under the guise of taxation, but it’s in your face now, they’re raiding our piggy banks.

  8. You all have it backwards. The uninsured depositors would be wiped out were it not for the bailout. The banks are insolvent. The evil governments let them keep 70% of their money.


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