Cyprus Bank Accounts

[rockyracoon]

Just seen on the news that a bailout package agreed for Cyprus includes a one off tax on bank accounts, €100,000 and over 9.9%, anything under 6.75%. Jeez, imagine if they did that here.

[emmie]

trying to work it out...

http://www.bbc.co.uk/news/world-europe-21814325

[emmie]

Duck Turpin rides again, still reading it, but this isn't good is it?

[KJN]

Here are the outlines of the financial package:
- Nicosia will impose a 9.9 per cent one-off levy on deposits above €100,000 in Cypriot banks and a tax of 6.75 percent on smaller deposits from March 19. The levy will generate €5.8 billion.
Depositors will be compensated by equity in the banks.
There will also be a tax on interest that the deposits generate.
- Cyprus has agreed to increase its nominal corporate tax rate by 2.5 percentage points to 12.5 per cent, which could bring in up to €200 million a year.
- The International Monetary Fund is expected to contribute to the rescue package, but the amount is still to be determined.
- Russia will likely help finance the programme by extending a 2.5 billion euro loan already made to Cyprus by five years to 2021 and reducing the interest rate, which is now at 4.5 per cent.
- Cyprus may be required to privatise the Cypriot telecoms company, the electricity company and the ports authority.
- Cyprus will have to downsize its banking sector, reducing it to the EU average by 2018. The size of the banking sector in Cyprus is more than eight times the size of the economy, compared to around 3.5 times in the EU.

[rockyracoon]

Are they in as much bother as Greece?

I'm assuming they are taking measures to stop people withdrawing money from their account, but the date when the tax kicks in is 19th March from what I can make out.

[emmie]

how can they stop people taking out their own money?

[bibblebub]

According to Reuters news agency, almost half of the depositors in Cyprus are believed to be non-resident Russians. - laundering been going on?

[grasscarp]

On the news I heard that the cash machines are not giving out any money. I went for a walk earlier in Nicosia so just as well I didn't try to take out any money.

[rockyracoon]

Imagine if you were skint and needed to buy food, or a tourist that needed spends.

[rockyracoon]

Are you on your holidays Grasscarp, or do you live in Cyprus?

[KJN]

Rockyraccoon, yes they are in trouble like Greece, probably partly due to the fact that they purchased many Greek Bonds that are now worthless. They have been in trouble for a few years now and unfortunately the previous government (which changed a couple of weeks ago) did not seem to think there was a problem. Most ATM machines are empty now and all on line banking has been suspended, it's a holiday on Monday and the Levi's will be taken from the accounts over the long weekend. ( well this is what has been reported in the Cypriot newspapers and radio. )

[rockyracoon]

Not good for the poor Cypriots. A long weekend for them if they have no cash to hand.

[grasscarp]

I arrived in Cyprus on Thursday. I am working here for two weeks. Only 2 English channels on tv and surprised to find Cyprus in the news like this.

[rockyracoon]

Have you enough cash to last you til after the weekend?

[grasscarp]

I have a 20 euro note with a tear in it so hope it is accepted when I go to visit the observatory. Luckily I can do all my eating at the hotel. Monday is called green Monday and is start of lent here.

[rockyracoon]

Good luck :)

[grasscarp]

Thanks Rocky. at least I have hot sunny weather and the hotel house red is excellent.

[rockyracoon]

Great stuff, wish we had a bit if that hot sunny weather here.

[New Judge]

This shambles is, of course, one of the many benefits of the EU and of the single currency in particular.

[emmie]

not just limited to Cypriots, any British ex pats are also in the mix. One chap being interviewed was furious, who could blame him..

[grasscarp]

It just said on news that in Cyprus people vented their anger by withdrawing money from banks. They also showed their anger by driving around sounding car horns late into the night. Grasscarp Nicosia.