Have The Russians Already Quietly Withdrawn All Their Cash From Cyprus?

Zero Hedge

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.

Reuters

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.

It seems the smart (or most corrupt) money has left Cyprus leaving the locals with the bulk of the bailout. Seems that the closed banks were not really closed for all.

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.

Lucy! You have some 'splainin to do!

Not only the russians but everybody that was conducting shady business in Eastern Europe and Cyprus off-shores. This should have happened a long time ago, but it's good that it finally happened.

It sounds like a great haven for the Russian Mafia, and other people invested in Russian banks with zero deposit taxes.

Not to surprising.

ETA:
After reading the articles, this is really bad for the people of Cypress. Yikes!

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!

reply to post by kobewan69


hahaha

it aint all over yet!!!

reply to post by scoobyrob


well hopefully it will be soon

reply to post by kobewan69

Now it's too late and let me tell you something, as a Eastern European guy, I'm happy that it's all over!

Ohhh this is far from over.

And, just remember that the Cypriots thought everything was fine a few weeks ago, and now look. This could just as easily happen anywhere in the world..*cue scary music*..even in Eastern Europe. In fact, this whole Cyprus business should have you very concerned.

Just sayin..

Are you people that naive? The people of Cypus will suffer because of this. The outlook is that it will take untill 2020 before Cyprus will get out of the danger( the deficit of 100% )

It seems because of this action the Cyprus will have 4 years situations like Greece... Unemployment rate trough the roof.

Might want to add that in 2012 Cyprus had a rating of AAA in less then a year Cyprus has gone to CCC ( utter garbage).

They are crippling a country ( they extended the bank closing until Thursday ) and by doing this they are putting people's lives at risk.

And lets not forget the meeting the PM of Cyprus had with Putin last week. Europe(Germany) declared war on Russia and history will repeat itself and Europe will fall before Russia.

But at least our Bastille of the north is safe for now... We just sacrificed a new lamb.

reply to post by Senduko


My friend, have you ever been in Cyprus?
What is the "evil" measure that the EU and IMF impose? To tax with 30% every deposit of over 100.000 EUR. Well very good, since 99% of those deposits are DIRTY MONEY! Money used for bribes, money coming from arms trades, human traficking, robbing, and so on. The deposits under 100.000 won't be affected.

Regarding Eastern Europe, well, our politicians stole about everything here so ) we can only go up from here (see the case of Poland)

reply to post by kobewan69


I wish too.

reply to post by kobewan69


It doesn't matter. Its THEFT and more so, this is only because the first proposal was downvoted by the Cyprus Parliament. The Troika initially proposed a TAX on everyone

And you know what happened? The Troika got smarter, because this proposal isn't a Tax the Cyprus Parliament isn't allowed to vote on it. Hows that for democracy.

And read my comment above and see how this will effect those hardworking Cypriots and then tell me they did the right thing.

Also if it wasn't the mismanagement of the EU all would be well and Cyprus or Greece or any other country trying to follow this idiotic and insane " recommendations" would be fine.

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!

most of it is not dodgy money ffs, have a word with yourself- tiny minority of Russian gangsters does not a majority make

This is theft, pure and simple and good cause for civil insurrection

........also, even if it was all "dodgy" (which it isn't)- who is taking it?!? Some of the most dodgy entities known to man!

the Russians can just divide up their accounts which are over the 130,000 Euro limit
into however many accounts could be made that were less than 100.000 Euros each,,,thus avoiding the seizures of monies


By doing so they get the advantages of Cyprus banking and confidentiality plus excape the 10-30% haircuts the theiving banks/ECB/IMF/World Bank cartel of financial thugs want to impose on the Larger depositer accounts (which were once free and beneficial for the depositer/saver)


sure, it is clear that Russian Mafia monies are probably involved and possibly getting 'Laundered' through the Cyprus bank... but that aspect is for a Jury to decide...Not a group of finance system technocrats who desire to impose money confiscation rules on any of those accounts 'they' deem worthy of being confiscated
~because it is the right thing to do~



today its Only the accounts over +100.000 Euros...

Tomorrow it will be any & all monies, in all accounts everywhere... that are not first taxed or channeled through the system (like poker night winnings or other gambling profits that were not generated from labor wages, etc)
they are coming to get any money in your accounts that is more than the Austerity Pay your allowed to have to buy your rationed allotment of resources...(water, electric, gas, utilities etc)

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.

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.

i would think that the banks would need to give the account owner a full business day at least to ammend their accounts, or consolodate them, or fractionalize an account into two or more seperate accounts.... Laws have a lead-in time before enacted--- are the banks special in they change the rules unannounced and everyone has to accept the new ---law of the land ?


the accounts were only frozen until the day the bank resumed activity...the old rules must apply at the resumption but the rules changes will be introduced in a given period of time


that is the way the world operated until now (this present Cyprus banking crisis)

I don't think there's anything that will save Cyprus from a bank run.

Who in their right mind would leave their money in the banks now?

reply to post by Agit8dChop


Obviously not the Russians and that is exactly what is going on here. The Russian Mafia got their money out while everyone else gets screwed. The same will happen worldwide while those who have been sleeping watch it happen and wonder why. You have to wonder exaxctly what went on in ther meeting with Cyprus Officials and Russians Officials when Russia turned them down. Hmmmmmm.

reply to post by undertheraydar


Hmm, I dunno.

Its the banks who need the money.

Its the banks who hold the money.

I cant see the banks letting the Ruskies walk in and demand the money anymore than anyone else.

reply to post by Agit8dChop


The banks only have money if they are fed money to make money (as long as they don't bet on Greece LOL).
They only hold the money as long as they are fed the money and don't make bad bets.
If it is a decision between your life and giving them their money back they will choose the latter. No one will ever know what was said behind closed doors so it is all left to speculation. There have been many, many people die in Russia or in other countries that have known too much or stepped outside of the expected behaviour so I wouldn't disregard an under the table deal here. Just saying.