View Full Version : Would you be happy to bail out your country
Shock in Cyprus as savers face bailout levy
A one off charge of up to 10% on all savers accounts in Cyprus banks 6.7% on amounts below 100.000 thousand euros 10% above this amount.
It was part of a 10 billion bailout agreed with Brussels yet nobody thought to ask the bank customers first.
Even it you tried to withdraw your own money the banks held back the amount for the levy.
Customers will be compensated with shares in the bank.
How can this be legal, would you like to be forced to have shares in something that could be worthless.
M Swanson
17-Mar-13, 10:53
Unless this is stipulated in the bank's terms and conditions, it must be theft, surely. And hasn't it caused a dangerous precedent that may very well be used in other countries, to include Britain? I can imagine investors in Spain, for example, heeding the warning signs and moving their accounts elsewhere. How long before there's a meltdown and banks collapse?
The EU has not imposed such drastic measures on other countries who have received enormous bail-outs, so why Cyprus? Perhaps this bureaucratic, social engineering EU monster is going skint? How much longer will it be before they raid our pockets, or bank accounts?
Details on BBC News Cyprus bailout
RagnarRocks
17-Mar-13, 11:08
It was part of the bailout deal hammered out with the Germans they insisted on it in order for Cyprus to get the rest of the bailout money. Nice to see Europe showing its true colours at last
been reading a few stories about this myself. its affecting our troops stationed there too so they aint gonna be happy. With regards to other countries, its a distinct possibility that if this goes through then it will apply to future EU bailouts. Theres a prickly feeling that the Germans want outsiders to invest in their country and people think this is Merkels' ploy to get her own country benefitting but others see that investing totally outside of the EU would be better and if this happens, the EU wont be able to sustain itself
been reading a few stories about this myself. its affecting our troops stationed there too so they aint gonna be happy. With regards to other countries, its a distinct possibility that if this goes through then it will apply to future EU bailouts. Theres a prickly feeling that the Germans want outsiders to invest in their country and people think this is Merkels' ploy to get her own country benefitting but others see that investing totally outside of the EU would be better and if this happens, the EU wont be able to sustain itself
George Osborne on Andrew Marr's show this morning stated our troops in Cyprus would be compensated by the UK government if they lost any money through this bail out
Originally Posted by ducati
If you go to forn shores and take your cash you can only expect this, you can't trust forners
Interesting. Thing is 'We' are behind this. We being the democratic European Union, we are the forners. And the concern is what could they (We) do to the UK savers? (Which MP was telling us to be 'prudent savers', was it the submarine?)
I'm not talking about ex pats who have taken their cash with them, I'm talking about the normal Cypriot who has a few quid for a rainy day, or saving for retirement, kids education. A 7% hit is quite a chunk of 'tax', remember this has been fiddled to circumvent the laws protecting the first 100,000 Euros.
And what in a few months when the first bail out doesn't work and they need more cash, do they go again?
And this is potentially costing us too, the chancellor has agreed to compensate any UK staff based out there.
And again it's saving bankers who have colluded with criminals.
Apologies, cross posting now due to meddlesome senile trigger happy moderators! (apparently with a sense of humour failure!)
its a distinct possibility that if this goes through then it will apply to future EU bailouts. I feel it sets quite a precedent, and not just for bailouts.
EU regulations can be pretty complex and expansive documents, and have many clauses written in. If they get away with this what is to stop them writing in protection for future financial budgets, easily done and hidden away looking quite inconspicuous. If at a later date the EU sets itself a higher budget, or a member state cant meet it's financial obligations, there then could be a 'tax' on all citizens private accounts to cover any shortfall??
Or just a blatant EU wide 'Robin Hood' 'Tax' on all private savings to raise some cash?
Savings are spare money.... Better to take a small slice of peoples spare money as opposed to cutting the income of those struggling on benefits...
So I say good on you Cypress for having the guts to do the right thing even though it may be unpopular.
John Little
17-Mar-13, 12:33
Well the bankers must have their bonuses - the money has to come from somewhere.
Without it they could not maintain a decent standard of living.
And if they did not get their hard earned money they would all go and work abroad - we must be competitive and you have to pay for top talent - just look at RBS.......drone, drone drone.....
Savings are spare money.... Better to take a small slice of peoples spare money as opposed to cutting the income of those struggling on benefits.Further perpetuating the myth that the 'benefits' system is the best and safest form of 'employment'!
How would you define 'spare' money.
Those who struggle and go without things to put a little aside to pay for their future retirement, or children's education, having worked to earn the cash and pay tax on it already. Only to have it taken away!
Do you not think part of the Cypriot austerity measures are not going to affect their 'benefits' system?
The prudent savers, being careful and putting a little aside to cover any future unforeseen needs, rather than the gamble it all away now bankers, being hit.
Hmmm....
Maybe we should put all our cash in tins under the bed and say we're skint and go ad sign on.
M Swanson
17-Mar-13, 15:47
Anyway, I thought you might like to watch this very funny video, that I believe states the case perfectly for withdrawing from the EU. It's factual, but is certainly not without its' humour. :cool: Just submitted to lighten proceedings a little. See what ya think. :D
'European Debt Crisis for Dummies' [fair use reupload!] Best Short EU Review Ever! - YouTube (http://www.youtube.com/watch?v=dbaVbSTXSf4)
In any event, even if the levi goes ahead or is cancelled, as soon as bank accounts are unfrozen there will be the mother of all runs on Cypriot banks (and maybe many others) causing complete meltdown and the bankrupting of Cyprus at least. Don't think this is any different to a potential mansion tax BTW. The damage has been done folks, start stockpiling cash (and food and ammo). :eek:
M Swanson
18-Mar-13, 09:33
Yeap! That's fair comment Ducati and I agree. Cyprus today ....... who tomorrow? I'll start stockpiling, just in case. :eek:
watching the Euro v Pound value at the moment. This Cyprus situation is making a lot of people edgy
08:37 1.16641
08:38 1.16647
08:39 1.16701
08:40 1.16731
whats it going to be like at 09:00 when UK trade opens.......
"in order to ensure the payments go to the intended recipients, pension payments to UK pensioners resident in Cyprus have been suspended pending further information". DWP website has advice to pensioners.
Not sure I'm understanding this right, if the EU pinch bits of money that the Russians pinched from themselves does that make it right?
And will Merkel & Von Pimpy will be checking their salt cellars & pepper pots from now on for polonium 210?
I think this is a very dangerous precedent.
I also think it's morally wrong.
You get taxed as you earn money, then you get taxed for keeping it in a bank and not spending it?
What should the prudent saver do? Invest in gold? The rise in the price of gold over the last few years might have been the result of some sound foresight.
Money should be safe in a bank, full stop. By all means tax interest, but taxing capital is wrong. I wouldn't keep a penny in a bank account if I ever thought this could happen to me, and if everybody did the same the UK banks would be in REAL trouble very soon.
George Osborne on Andrew Marr's show this morning stated our troops in Cyprus would be compensated by the UK government if they lost any money through this bail out
And by "government" he means "tax payer".
So I'm being punished for others having money in foreign bank accounts?
Crazy.
Does no one in the eurozone understand basic economics?
How is any economy going to recover with the draconian measures being imposed?
I may be being vey suspicious here but it seems to me that once again the germans are trying to win the peace.
equusdriving
25-Mar-13, 22:25
Savings are spare money.... Better to take a small slice of peoples spare money as opposed to cutting the income of those struggling on benefits...
So I say good on you Cypress for having the guts to do the right thing even though it may be unpopular.
yes of course charge the people who not only support/keep themselves but keep those on benefits....................
equusdriving
25-Mar-13, 22:32
Further perpetuating the myth that the 'benefits' system is the best and safest form of 'employment'!
How would you define 'spare' money.
Those who struggle and go without things to put a little aside to pay for their future retirement, or children's education, having worked to earn the cash and pay tax on it already. Only to have it taken away!
Do you not think part of the Cypriot austerity measures are not going to affect their 'benefits' system?
The prudent savers, being careful and putting a little aside to cover any future unforeseen needs, rather than the gamble it all away now bankers, being hit.
Hmmm....
Maybe we should put all our cash in tins under the bed and say we're skint and go ad sign on.
Don't you realize that its this sort of selfishness that leads to many people on benefits going without essential's such as designer clothes, widescreen telly's, sky tv etc etc i even saw one the other day who still had a blackberry that must have been at least 3 months old...........
Don't you realize that its this sort of selfishness that leads to many people on benefits going without essential's such as designer clothes, widescreen telly's, sky tv etc etc i even saw one the other day who still had a blackberry that must have been at least 3 months old...........
Do not upset me, it happens in Scotland s THREE MONTH OLD BLACKBERRY, MUST HAVE A NEW PRAM
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