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Cyprus Rescues Greece April 30, 2013

Posted by Michael in News.
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Not so long ago (1974), Greek Cypriots feared Turkey, and their Turkish Cypriot neighbors, and looked to Greece as their protecter.

Now, Greek Cypriots are being forced to help bail out (or “bail in”) the bankrupt economy of Greece.  They ain’t happy about it.

The so-called ‘bail-in’ forces savers to foot the bill for the recapitalisation of Cyprus’ biggest bank, after it was hit by massive losses from its exposure to debt-crippled Greece.

Bank of Cyprus said it had converted 37.5pc of deposits exceeding €100,000 into “class A” shares, with an additional 22.5pc held as a buffer for possible conversion in the future.

Another 30pc would be temporarily frozen and held as deposits, the bank said.

via Bank of Cyprus executes depositor bail-in – Telegraph.

Just amazing what runaway spending and government debt can accomplish.

Comments

1. lauraw - April 30, 2013

What they need is another stimulus.

*takes hit off crack pipe*

2. geoff - April 30, 2013

…and the fun will continue:

European politicians will take the “easy option” of taking money from the rich rather than raising taxes and cutting spending to deal with the continent’s debt problem, Lars Christensen, the head of Saxo Bank, said.

Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: “There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the eurozone, without a doubt.

“There’s no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe. They will either have to raise taxes and cut spending, or politicians will take the easier route and take money from the rich.”


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