Eurozone finance ministers have agreed a 10bn-euro bailout deal for Cyprus to prevent its banking system collapsing and keep the country in the
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.
A last-minute deal on a bailout for Cyprus' crippled banks has been reached. After talks going into the early hours of Monday morning in Brussels -
Eurozone ministers agreed a $13bn bailout to save the mediterranean island's banking system from collapse. The Cypriot president and finance minister
held late night talks with European leaders in Brussels. Here's a wrap-up of what appears to be the terms of the 10bn-euro ($13bn) deal between
Cyprus and international lenders.
So, there is a GOOD and a BAD bank and the good bank gets save and the bad bank is left for the vultures.
Is the good bank cater to local who TPTB dare not infringe upon considering they are really pissed off and ready to burn down anything with it and the
BAD BANK, who cater mainly to foreigners and who also might have to take a hefty 40% haircut is deemed OK because they are foreigners and therefore
unlikely to take matters into their own hands.
- Putting an end to the tax haven status of the Cyprus banks in which Russia and Britain are the two main foreign users. Raises questions with what is
on the horizon for the Cayman Islands and other tax havens around the world.
- Implements one solution to the toxic debts that are still in the system from the GFC a few years ago. Set up a bad bank and pull the pin.
- A lot of questions and different views are raised on how this will affect GDP. The off shore gas reserves will have to be tapped if there is any
chance of keeping debt to GDP ratios at a manageable level. The risks of recession with the collapse of a major bank is reasonable placing further
stress on its GDP and debt.
- If there was a 40% cut on all accounts over €100,000 then that would collect €15 Billion, so a lot is still unclear as to which accounts and how
much. It sounds like shares will be offered to those who lose money with this bad bank, but if the bank does crash then these shares are worthless.
- There is some concern that a similar plan will be used in other nations to help with their debt problems and this is just a test case with a small
nation to try out the basic principle, operation and repercussions.
seems to me, this is like saying that the central banks and their associate banks really own all that paper that we work so hard for, and they can
take it back, whenever they want. Got a feeling there a gonna be a few less billionaires soon!!
They, those thieving robbers are really at their wits end to think up of such scam.
Now they are telling us that there are categories of banks;
Good Gooder Goodest and Bad Badder Baddest.What the hell happened to those rating agencies ?
These are just scam artists that have the privilege of feasting themselves on other people's monies and the way they are doing it in Cyprus is; the
further you are away from them (i.e. foreigners) they will feel safer robbing you blind because if they do it to the locals, those locals have ample
time to thrash up whatever plans those central bankers have for them and might cost them to pay dearly, even with their lives as the situation now is
so dire that whoever those in power will be held accountable due to accessibility to them. For example, those local Cypriots could bloody well turn up
at those bankers' homes with pitchforks and torches but those foreign account owners will have been quite some times away.
The tagline now is : Rob The Foreigners and Pacify the Local.
The locals should have some form of solidarity with those foreign account holders as well because history taught us that to think otherwise will be to
their own misfortunes later.
First They Came .... poem by Martin Niemöller
"They came first for the Communists, and I didn't speak up because I wasn't a Communist.
Then they came for the Jews, and I didn't speak up because I wasn't a Jew.
Then they came for the trade unionists, and I didn't speak up because I wasn't a trade unionist.
Then they came for the Catholics, and I didn't speak up because I was a Protestant.
Then they came for me, and by that time no one was left to speak up."
-- by Martin Niemöller, prominent German anti-Nazi theologian and Lutheran pastor, best known as the author of the poem First they came....
Take to heart the teaching of Father Martin Niemoller.
Do not let bad things happen to others even when you are not one of them.
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