Cyprus bailout: Deal reached in Euro-group talks savers may face 40% LOSS Russia Europe face down

Cyprus bailout: Deal reached in Eurogroup talks

 

IMF chief Christine Lagarde: “We believe that this will form a durable and fully financed solution”

Eurozone finance ministers have agreed a 10bn-euro bailout deal for Cyprus to prevent its banking system collapsing and keep the country in the eurozone.The military may rescue up to 60,000 expats as the island faces financial meltdown

Laiki (Popular) Bank – the country’s second-biggest – will be wound down and deposit-holders with more than 100,000 euros ($130,000; £85,000) will face big losses.

However, all deposits under 100,000 euros will be “fully guaranteed”.

The European Central Bank had set a deadline of Monday for a deal.

Laiki will be split into “good” and “bad” banks, with its good assets eventually merged into Bank of Cyprus.

The president of the Eurogroup of eurozone finance ministers, Jeroen Dijsselbloem, told a press conference in Brussels the deal had “put an end to the uncertainty” around Cyprus’s economy.

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Bondholders and those with deposits of more than 100,000 euros face significant losses; perhaps 40% or more”

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He added he was “convinced” the new deal was better for the Cypriot people than the broader measure rejected by the Cypriot parliament last week, as it focused on two problem banks rather than the entire sector.

IMF head Christine Lagarde said the deal was “a comprehensive and credible plan” to help restore trust in the banking system.

Cypriot Finance Minister Michalis Sarris said he believed the possibility of bankruptcy had been averted.

“It’s not that we won a battle, but we really have avoided a disastrous exit from the eurozone,” he said.

The deal is being seen as good news by many of Cyprus’s small account-holders who have been protected. But officials acknowledge that Cyprus will enter a deep recession and that it will take years to recover, BBC Europe correspondent Chris Morris says.


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There may be some relief that smaller savings no longer face a 6.7% levy, but Cypriot citizens may over time end up feeling more than 6.7% poorer as a result of this so-called bailout”

Many businesses will suffer or shut down, he says.

Under the deal all deposits under 100,000 euros will be secured.

The percentage to be levied on large deposits in the Bank of Cyprus will be resolved in the coming weeks, Mr Dijsselbloem said.

One key element of the deposit tax, demanded by the IMF, is that it should not require approval by the Cyprus parliament.

EU Commissioner for Economic Affairs Olli Rehn said that the “depth of the financial crisis in Cyprus means that the near future will be difficult for the country and its people”.

Asian financial markets rose in early trading on news of the deal.

Bondholders and those with deposits of more than 100,000 euros face significant losses; perhaps 40% or more

Many businesses will suffer or shut down,

 

“Jim Sinclair”  The Russian interests will win if nobody touches their deposits.  The Russian interests will lose if deposits over 100,000 euros are taxed significantly with no exception. So, really, the face down is still in process.

Cyprus bailout: Kremlin ‘could punish Europe’ in

reprisal for bank levy

Fears mount that Russia could act against European companies if charge on deposits hits €30bn Russian investments

Fears are growing of Russian reprisals against European businesses as EU authorities desperately seek a deal to save the Cypriot economy by imposing a 25% levy on bank deposits of more than €100,000.

As the island scrambled to put together a rescue programme, its finance minister, Michalis Sarris, said “significant progress” had been made on the latest levy plan in talks with officials from the European Union, theEuropean Central Bank and the International Monetary Fund.

The government in Nicosia faces a deadline of Monday to reach an agreement or the European Central Bank says it will cut off emergency cash to the island, spelling the likely financial collapse of its banking system and a potential exit from the European single currency.

However, with Russian investors having an estimated €30bn (£26bn) deposited in banks on the island, the growing optimism about a deal was accompanied by fears of retaliation from Moscow. Alexander Nekrassov, a former Kremlin adviser, said: “If it is the case that there will be a 25% levy on deposits greater than €100,000 then some Russians will suffer very badly.

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8 thoughts on “Cyprus bailout: Deal reached in Euro-group talks savers may face 40% LOSS Russia Europe face down

  1. Well first it was all planned now going viral planned also america is next some time down the road I say shortly the enemy’s of Christ are moving rapidly and know time is short the big a is coming very soon and all hell will break out so I say get back to God start repenting not later but now Our Blessed Mother stated the good are going to suffer with the bad has it not already been happening thru out the world yes one last point I am a Roman Catholic not conciliar or norvusorder leave Rome it has lost the faith and Become the seat of the antichrist Our Lady’s warning gone on deaf ears

  2. Pingback: Cyprus punished heavily in EU bailout deal |

  3. Time for Cypess to use the Iceland playbook. Reject any and all bailouts, as it is not their debt, it is the banksters and gov’t. Charge banksters and gov’t for the misuse of public money and throw them all in jail. There is no such thing as “too big to fail” and that becomes evident when a country shows the banksters they are not “too big to jail”.
    Iceland did this and all the central bankers said they would be in poverty for generations. It did not happen and they now enjoy one of the more stable currencies in that region of the world.

  4. Planned, absolutely and with the mentality to not a good crises go to waste! They will use this to usher in the 6#6 system while deleting our bank accounts unless you comply! It’s all Satanic camel dung eaters dream! Well, I’ve got a word for all of them! This system will demand everything they own. The anti c system will use the so called string puller elites to do his bidding then he’ll throw them under the train leading straight to HELL! Most of the elites will be taken out by mid point of Daniel’s week! Satan will require all the wealth of the world to fund his end game military, all for not! The greatest wine press of the Lord Jesus Christ will crush this evil army and system. Satan’s chance of success is a 100 percent O !

    • if you watch the star wars film where darth vader(antichrist) does his masters bidding(emperor-lucifer) he kills all those who they used to start the war and cause the chaos, although just a film lucas is a high masonic luciferian homosexual hollywood insider. These films are very prophetic.

  5. Pingback: E.U. Finance Ministers Approve Cyprus Bailout Deal | World Chaos

  6. Pingback: E.U. Finance Ministers Approve Cyprus Bailout Deal | Road To Armageddon And Beyond

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