Cyprus now looks to take 25 percent from bank accounts of wealthy
137 replies, posted
[quote][I]NICOSIA[/I] -- Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the
European Union and to avert financial collapse.
Finance Minister Michael Sarris said "significant progress" had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.
He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros (about $130,000) at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.
Cyprus faces a Monday deadline to clinch a bailout deal with the EU or the European Central Bank says it will cut off emergency cash to the island's over-sized and stricken banks, spelling certain collapse and a potential exit from Europe's single currency.
Amid signs of momentum, Cypriot and EU officials said Cypriot President Nicos Anastasiades was expected in Brussels on Sunday to meet EU leaders including Council President Herman
Van Rompuy and Commission President Jose-Manuel Barroso, as well as IMF Managing Director Christine Lagarde and the head of the ECB, Mario Draghi.
Van Rompuy and Barroso canceled a planned EU-Japan summit in Tokyo to tend to the Cyprus saga and euro zone officials told Reuters that the bloc's 17 finance ministers would meet on Sunday afternoon.
"Significant progress has been made in the direction of getting a deal, at least at the troika level," Sarris told reporters.
He said a number of issues were still outstanding, but that a package could be ready "late this afternoon or early evening" for approval by parliament.
Arriving at the troika talks, Andreas Artemi, chairman of Bank of Cyprus, was asked if a 25 percent haircut was being considered on uninsured deposits. He replied: "I don't know that yet."
A senior lawmaker told Reuters earlier on Saturday that parliament was not expected to convene until after the meeting of euro zone finance ministers on Sunday afternoon, taking the crisis right down to the wire.
The same legislature on Tuesday angrily threw out a proposed levy on bank deposits, designed to raise the 5.8 billion euros the EU wants in return for a 10 billion euro ($13 billion) bailout.
[B]'Edge of an abyss'
[/B]
The tax is unprecedented in Europe's handling of a debt crisis that has spread from Greece, to Ireland, Portugal, Spain and Italy. It is by no means certain the tiny legislature will accept the measure this time around.
The turnaround came after Russia rebuffed Cypriot entreaties to help its banks, where Russian citizens and other foreigners have billions of euros at stake.
Significantly, the latest proposal would spare small depositors, who were outraged by the original plan to hit small holdings as well as large accounts, many of them held by rich foreigners including Russians.
Cypriot leaders fear the damage the levy would do to the country's offshore banking industry.
The tottering banks hold 68 billion euros ($88 billion) in deposits, including 38 billion ($49 billion) in accounts of more than 100,000 euros - enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.
But much of the banks' capital was wiped out by investments in Greece, the epicenter of the euro zone debt crisis.
Racing to placate its European partners, Cypriot lawmakers voted in late-night session on Friday to nationalize state pensions and split failing lenders into good and bad banks.
They also gave the government powers to impose capital controls on banks, anticipating a flood of money from the island when banks are due to reopen on Tuesday after more than a week of lockdown.
The plan to nationalize semi-state pension funds has, however, met with resistance, particularly from Germany which made clear that tapping pensions could be even more painful for ordinary Cypriots than a deposit levy.
The pace of the unfolding drama has stunned Cypriots, who have besieged bank cash machines since the levy was first mooted a week ago.
"Our so-called friends and partners sold us out," said Marios Panayides, 65, a protester at the parliament. "They have completely abandoned us on the edge of an abyss." [/quote]
[url=http://worldnews.nbcnews.com/_news/2013/03/23/17428178-cyprus-now-looks-to-take-25-percent-from-bank-accounts-of-wealthy#comments]Source[/url]
... That's literally legalised theft. How could they possibly get away with that? Or [I]consider[/I] that?
Well, they are reclaiming it from the 1%...
[QUOTE=SPESSMEHREN;40023000]Well, they are staling it from the 1%...[/QUOTE]
So? A lot of those worked for that money. Quite intensively.
[QUOTE=Kendra;40023047]So? A lot of those worked for that money. Quite intensively.[/QUOTE]
Yes and therefore it sure is a shame that most governments choose to steal from them by levying taxes.
[QUOTE=Kendra;40023047]So? A lot of those worked for that money. Quite intensively.[/QUOTE]
apparentely the alternative is state bankrupcy
take ur pick
"So, guys. How do we make literally everyone in our country either leave, hate us, or want to go revolt? Now, we've already got the poor, how do we piss off the people who have actual say?"
[QUOTE=DrBreen;40023064]apparentely the alternative is state bankrupcy
take ur pick[/QUOTE]
A government has failed at it's job. Why are we acting like we did when the banks started to fall? Let it collapse, move in with corporations, make the business of government an actual business. Cyprus wouldn't be in the shitter then.
It's basically saying that if the money is in their reach, they can feel free to take it when they need it, treating it like a piggy bank they can break into. Why anyone would leave money in a country that would allow that to happen is beyond me.
[QUOTE=DrBreen;40023064]apparentely the alternative is state bankrupcy
take ur pick[/QUOTE]
So if a government does a terrible job, they can justify stealing from their citizens?
[QUOTE=Boba_Fett;40023157]So if a government does a terrible job, they can justify stealing from their citizens?[/QUOTE]
Isn't that essentially what's happening in the US now that sequestration's kicking us in the nuts?
[QUOTE=Boba_Fett;40023157]So if a government does a terrible job, they can justify stealing from their citizens?[/QUOTE]
A government can justify anything as long as the perception is that they're in the "right."
Alot of wealthy people moved to Cyprus to screw with the taxes. Cyprus is in a p rough shape already so I think its justified.
[QUOTE=Forumaster;40023200]Isn't that essentially what's happening in the US now that sequestration's kicking us in the nuts?[/QUOTE]
Not at all? There are no tax changes due to the sequestration.
[QUOTE=Boba_Fett;40023157]So if a government does a terrible job, they can justify stealing from their citizens?[/QUOTE]
every government does this get your head out of the tinfoil
[QUOTE=Worldwaker;40023068] A government has failed at it's job. Why are we acting like we did when the banks started to fall? Let it collapse, move in with corporations, make the business of government an actual business. Cyprus wouldn't be in the shitter then.[/QUOTE]
This is one of the worst statements I've ever read.
Cyprus and Greece have no options.
What else could they do? End their independence and pay back the big debts with their nation as real estate?
Remember Cyprus is a fiscal paradise: a lot of the money in the banks is laundered by wealthy Russians. At least they're taxing foreigners instead of slashing pensions (like they wanted to do)
[QUOTE=Kendra;40023047]So? A lot of those worked for that money. Quite intensively.[/QUOTE]It's Cyprus; most of that is probably Russian mob money.
[QUOTE=King Tiger;40023259]Not at all? There are no tax changes due to the sequestration.[/QUOTE]
Yeah it's just nearly every public service being cut or outright pulled, like FAA control towers, USPS deliveries, college assistance for soldiers, and tons of other shit on the chopping block.
They're still stealing from us because they fucked up.
If they go through with this, they have essentially permanently ruined their economy. Good luck ever finding anyone who is ever willing to keep more than 3 cents in a bank under their reach again.
[editline]24th March 2013[/editline]
[QUOTE=Sgt Doom;40023436]It's Cyprus; most of that is probably Russian mob money.[/QUOTE]
Even granting that all of it, not just some or most of it, is mob money, so what?
They are still basically hoisting a sign over their country that reads "YOU SHOULDN'T INVEST HERE EVER AGAIN!".
Oh no, don't take money from our wealthy corporate masters!
Seriously, fuck the rich. They have way more money than they need, and the "stealing" is going to help more people than if the wealthy horded it.
[QUOTE=Obnobs;40023951]Oh no, don't take money from our wealthy corporate masters!
Seriously, fuck the rich. They have way more money than they need, and the "stealing" is going to help more people than if the wealthy horded it.[/QUOTE]
how is this different from a citizen breaking into another's house and stealing from them
or is that just fine because they've got more money than you
[QUOTE=DrBreen;40023261]every government does this get your head out of the tinfoil[/QUOTE]
So if every government does it, that suddenly makes it okay?
[QUOTE=Worldwaker;40023068]A government has failed at it's job. Why are we acting like we did when the banks started to fall? Let it collapse, move in with corporations, make the business of government an actual business. Cyprus wouldn't be in the shitter then.[/QUOTE]
Haha, how naive. Corporations and citizens' rights doesn't mix well.
From what I've heard the Government is doing it because there are huge amounts of money from Criminal acts stored in Cyprus.
[QUOTE=proch;40024193]From what I've heard the Government is doing it because there are huge amounts of money from Criminal acts stored in Cyprus.[/QUOTE]
It's also been a money laundering paradise for everything from big gangs in that area to the damn Russian mob.
[QUOTE=cccritical;40024089]how is this different from a citizen breaking into another's house and stealing from them
or is that just fine because they've got more money than you[/QUOTE]
Personally I'm OK with it because it's the lesser of all evils. Taking money from the Russian mob > taking money from the Cypriots > letting the entire state and banks go bankrupt so everyone loses their money
Afterwards, though, the Cypriots should sack their government and raise hell because they fucked up so badly and allowed the situation to get like this in the first place
[QUOTE=DrBreen;40023261]every government does this get your head out of the tinfoil[/QUOTE]
it isn't tinfoil to acknowledge that the government is stealing from people to prop up its failed policies. maybe i would be in favor of taxing these bank accounts if immediately after the bailout each member of parliament and each official in government resigned their position and was exiled from the state, but that isn't what's happening. they are taking money from other people to fund their power and wealth, nothing more.
[QUOTE=DrBreen;40023064]apparentely the alternative is state bankrupcy
take ur pick[/QUOTE]
i would pick state bankruptcy personally.
fuck the imf and eu, people shouldn't be ruled by some international twats. let the system collapse and rebuild it independent of the imf and eu next time.
Instead of stealing they should ask Cypriots to put 20% of their savings into a Government Savings Bond. I'm sure many Cypriots would agree to put some money in if it is to save their country and they would have a choice how much to put in. They can also get their money back once Cyprus has its shit back together.
[QUOTE=yawmwen;40024510]i would pick state bankruptcy personally.
fuck the imf and eu, people shouldn't be ruled by some international twats. let the system collapse and rebuild it independent of the imf and eu next time.[/QUOTE]
You'd let thousands of people suffer because your government fucked up and the EU is trying to help, but wants to be sure the money is going to be used? And then the EU is the bad guy?
[QUOTE=deltasquid;40024531]You'd let thousands of people suffer because your government fucked up and the EU is trying to help, but wants to be sure the money is going to be used? And then the EU is the bad guy?[/QUOTE]
thousands of people are going to suffer by sucking the eu dick. the suffering is happening, what matters is whether you are going to step forward and prevent these pricks from fucking you over again.
[editline]24th March 2013[/editline]
and not just the eu. the imf, the cypriot parliament, all these guys are fucking over the cypriot people.
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