Bank of Cyprus big savers to lose up to 60 percent
Posted in the Columbus Forum
NICOSIA, Cyprus (AP)— Big depositors at Cyprus' largest bank may be forced to accept losses of up to 60 percent, far more than initially estimated under the European rescue package to save the country from bankruptcy, officials said Saturday.
Deposits of more than 100,000 euros ($128,000) at the Bank of Cyprus would lose 37.5 percent in money that would be converted into bank shares, according to a central bank statement. In a second raid on these accounts, depositors also could lose up to 22.5 percent more, depending on what experts determine is needed to prop up the bank's reserves.
The savings converted to bank shares would theoretically allow depositors to eventually recover their losses. But the shares now hold little value and it's uncertain when — if ever — the shares will regain a value equal to the depositors' losses.
Europe has demanded that big depositors in the country's two largest banks — Bank of Cyprus and Laiki Bank — accept across-the-board losses in order to pay for Cyprus' 16 billion euro ($20.5 billion) bailout.
Cypriot officials had previously said that large savers at Laiki — which would be absorbed in to the Bank of Cyprus — could lose as much as 80 percent. But they had said large accounts at the Bank of Cyprus would lose only 30 to 40 percent.
Analysts said Saturday that imposing bigger losses on Bank of Cyprus customers could further squeeze already crippled businesses as Cyprus tries to rebuild its banking sector in exchange for the international rescue package.
"Most of the damage will be done to businesses which had their money in the bank" to pay suppliers and employees, said University of Cyprus economics Professor Sofronis Clerides. "There's quite a difference between a 30 percent loss and a 60 percent loss."
With businesses shrinking, the country could be dragged down into an even deeper recession, he said.
There's also concern that large depositors — including many wealthy Russians — will take their money and run once capital restrictions that Cypriot authorities have imposed on bank transactions to prevent such a possibility are lifted in about a month.
60% is going to be a bargain here in the USA very soon when the dollar collapses.
Predictions are prior to end of 2013.
The past 4 years of complete economic squander has not gone unnoticed, and the dollar falling as the worlds currency is inevitable.
Next time you meet an Obama voter, punch them out for ruining the country.
There already is a run on the dollar, and it is worth 20% less than 1/11.
May I suggest you invest in Swiss Francs as soon as possible. Buy useless dollars with Francs when necessary.
“Larchmont's Leading Citizen”
Since: Dec 12
I think it's safe to assume that Cyprus has gun control.
(Comments apply to the internationally recognized Greek portion of the island) Cyprus has strict gun control. Private citizens are completely forbidden from owning handguns and rifles in any calber, even .22 rimfire. Only shotguns are allowed, and these require a license. Shotguns are limited to two rounds. The only shotguns typically sold in stores are double-barreled side-by-sides or over-unders. Pump actions and semiautomatics are prohibited. A private citizen can own a total of ten different shotguns. A citizen is not required to specify a reason for ownership to obtain a license, but most own their guns for hunting. Licenses are issued by provincial police. A gun license is required to buy ammunition, and ammunition sales are recorded. A shotgun owner may purchase up to 250 shells at one time. Cyprus also controls airguns, and airgun owners require a license.
Obama is out to destroy the dollar and collapse our economy to get revenge for his wife, Michelle, who was only proud of her country when Barak was able to gain power, Jeremiah Wright who preached hate for America and Sal Alinsky, the evil genius behind the thinking of Barak Insane Obama.
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