It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Yesterday, we first reported on something very disturbing (at least to Cyprus' citizens): despite the closed banks (which will mostly reopen tomorrow, while the two biggest soon to be liquidated banks Laiki and BoC will be shuttered until Thursday) and the capital controls, the local financial system has been leaking cash. Lots and lots of cash.
No one knows exactly how much money has left Cyprus' banks, or where it has gone. The two banks at the centre of the crisis - Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus - have units in London which remained open throughout the week and placed no limits on withdrawals. Bank of Cyprus also owns 80 percent of Russia's Uniastrum Bank, which put no restrictions on withdrawals in Russia. Russians were among Cypriot banks' largest depositors.
While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.
The stealth withdrawals by Russians of course means that the two megabanks are now utterly drained of capital, and that the haircuts on those who still have unsecured deposits with the two banks will be so big it will likely mean a complete wipeout of all deposits. As in 0% recovery on your deposits! In other words, by now any big Russian funds in Cyprus are long gone, and the only damage accrues to the locals: for one reason because their money over the critical EUR100K threshold has been "vaporized", and for another because the marginal driving force and loan demand creator in Cyprus, the Russians, are gone and are never coming back again.
Now it's too late and let me tell you something, as a Eastern European guy, I'm happy that it's all over!
Originally posted by kobewan69
reply to post by MystikMushroom
According to European Laws, states guarantee up to 100.000 of a regular deposit account. So the people will not lose money. Cyprus is in the EU and the cyprus banking system is functioning according to EU Directives.
The good thing is that finally there will be no more off-shores in Cyprus. And please, everybody knew about what kind of money were in Cyprus, all the people, so everybody was happy having that money in their country, now they are all upset that it left. Well they should have said or done something. Now it's too late and let me tell you something, as a Eastern European guy, I'm happy that it's all over!
Originally posted by Senduko
reply to post by St Udio
They can't because the accounts are blocked. By the time they can access it the money will be gone.