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Complete Eurogroup Statement On Cyprus

Tyler Durden's picture


One key, and very important, thing to note per the statement below, is that nowhere in the statement does the Eurogroup say that no levy will be taxed on those with €100,000 and less in deposits. What is said is the following: "The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below EUR 100.000. The Cypriot authorities will introduce more progressivity in the one-off levy compared to what was agreed on 16 March, provided that it continues yielding the targeted reduction of the financing envelope and, hence, not impact the overall amount of financial assistance up to EUR 10bn."

Bottom line: it is absoutely not clear what the levy on small "insured" deposits will be, if any, and it will be up to the Cyprus government to define it: a decision which will make or break the parliamentary vote, whose passage this statement will hardly make any easier.

From the Eurogroup

Statement by the Eurogroup President on Cyprus


The Eurogroup held a teleconference this evening to take stock of the situation in Cyprus I recall that the political agreement reached on 16 March on the cornerstones of the adjustment programme and the financing envelope for Cyprus reflects the consensus reached by the Cypriot government with the Eurogroup. The implementation of the reform measures included in the draft programme is the best guarantee for a more prosperous future for Cyprus and its citizens, through a viable financial sector, sound public finances and sustainable economic growth.


I reiterate that the stability levy on deposits is a one-off measure. This measure will - together with the international financial support - be used to restore the viability of the Cypriot banking system and hence, safeguard financial stability in Cyprus. In the absence of this measure, Cyprus would have faced scenarios that would have left deposit holders significantly worse off.


The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below EUR 100.000. The Cypriot authorities will introduce more progressivity in the one-off levy compared to what was agreed on 16 March, provided that it continues yielding the targeted reduction of the financing envelope and, hence, not impact the overall amount of financial assistance up to EUR 10bn.


The Eurogroup takes note of the authorities' decision to declare a temporary bank holiday in Cyprus on 19-20 March 2013 to safeguard the stability of the financial sector, and urges a swift decision by the Cypriot authorities and parliament to rapidly implement the agreed measures.


The euro area Member States stand ready to assist Cyprus in its reform efforts on the basis of the agreed adjustment programme.


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Mon, 03/18/2013 - 16:58 | 3344413 Black Forest
Black Forest's picture

Who the fuck is the Eurogroup?

Mon, 03/18/2013 - 17:00 | 3344425 maxmad
maxmad's picture

Bottom line: it is absoutely not clear what the levy on small "insured" deposits will be, if any, and it will be up to the Cyprus government to define it: a decision which will make or break the parliamentary vote, whose passage this statement will hardly make any easier.


Bend over!

Mon, 03/18/2013 - 17:39 | 3344584 MagicHandPuppet
MagicHandPuppet's picture

I'm sure this made everyone with money in a Cyprus bank account feel all warm and fuzzy inside.  It's not like everyone with a brain will line up and take every stinking euro out of their bank account as soon as the bank "holiday" end.  I'm sure they'll be whistling holiday tunes during the BANK RUN, BITCHEZ!!!!!!

Mon, 03/18/2013 - 17:50 | 3344628 toys for tits
toys for tits's picture


Cyprus needs to tell the EU to fuck off.

At least their peoples' currency won't go off a cliff, like Iceland's did.

Tue, 03/19/2013 - 04:02 | 3346001 fx
fx's picture

Yeah, I hope they do! And go bankrupt the next minute as they fully deserve it! Cyprus' business model for the past 20 years has been money laundering, tax abuse and getting large subsidies from the Eurozone. Off that they have made so much money as to offer their depositors generous interest with virtually no taxes on it. And now they cry  about, what, a 10% penalty? WTF??? They should be thankful that other countries bail them out at all. Let them vote it down - and let them go bk in turn. So that people  can finally learn the lesson. We are fed-up over here in Germany and Austria of everybody and his dog milking us dry! Greeks shouting at us because we handed them out 150 billion € - but refuse to repeat that exercise to eternity! All this talk of "confiscation" and "neo-colonialism" is utter crap by people who seem to feel entitled that someone always care for them and their needs.

Mon, 03/18/2013 - 18:39 | 3344803 Nussi34
Nussi34's picture

Eurogroup? Who voted for them?

Tue, 03/19/2013 - 07:58 | 3346236 StychoKiller
StychoKiller's picture

Less rapeage, but rapeage nevertheless!

Mon, 03/18/2013 - 17:01 | 3344433 jeebus
jeebus's picture

Any relation to the Blue Man Group?

Mon, 03/18/2013 - 17:44 | 3344608 Catflappo
Catflappo's picture

It certainly won't stop the people of Cyprus Russian to the ATM...

Mon, 03/18/2013 - 17:49 | 3344623 azzhatter
azzhatter's picture

2 words- FUCK YOU

Mon, 03/18/2013 - 17:55 | 3344641 Everybodys All ...
Everybodys All American's picture

It would appear that they are the old national socialist democrats.

Mon, 03/18/2013 - 18:45 | 3344831 Relentless
Relentless's picture

Eurogroup - sponsored by KY

Mon, 03/18/2013 - 17:14 | 3344488 scatterbrains
scatterbrains's picture

They kinda look like pussies to me..  but we'll see I guess.

Mon, 03/18/2013 - 17:58 | 3344644 hack3434
hack3434's picture

All show no go...(Unless we see heads rolling...literary...)

Mon, 03/18/2013 - 18:05 | 3344671 toys for tits
toys for tits's picture

Your last picture there received a Super Bowl ring.  From Bob Kraft who said he wasn't going to ask the former head of the KGB for his ring back after he let him look at it.

Mon, 03/18/2013 - 18:08 | 3344684 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

hmm they like the hubbly bubbly...I did not know that

Mon, 03/18/2013 - 17:30 | 3344545 e m m
e m m's picture

Did Germany complain when they were buying Mercedes from them?

Mon, 03/18/2013 - 17:41 | 3344596 Edward Fiatski
Edward Fiatski's picture

Probably a UK import. We drive on the left here. :)

Mon, 03/18/2013 - 17:20 | 3344420 Croesus
Croesus's picture

Just Say it, Eurogroup:


You fucked up! You stole from the KGB, and destroyed the confidence level that everyone has in your paper scam.

Bank Runs, here we come!

Gold run, here we come!


Mon, 03/18/2013 - 17:20 | 3344509 McMolotov
McMolotov's picture

Run, Forrest, run!

Mon, 03/18/2013 - 17:35 | 3344551 Croesus
Croesus's picture

Coming soon to a USA near me:

It's only a matter of time.....once "government", ANY government gets an idea in their head, they do not let it go. It might change a little, be titled differently....but the idea is "here to stay".

@ Tyler:

Could we start a ZH poll on "Who will be the next country to shave their citizen's bank accounts?"

Mon, 03/18/2013 - 18:01 | 3344652 Relentless
Relentless's picture

You don't get it, they're *ALL* doing it already. Its just that some of them call it taxes and others deny that their inflation rates are that high.

Mon, 03/18/2013 - 18:49 | 3344842 Croesus
Croesus's picture

Oh, I get it perfectly well. This is just very blatant, whereas the average sheople doesn't pick up on the concept of 'confiscation through inflation' that easily. I'm betting it will start happening in other countries soon, especially in places where people are very politically passive.

Mon, 03/18/2013 - 19:59 | 3345122 lotsoffun
lotsoffun's picture

i think lebron james was traded today for 10 billion dollars for lil' wayne to perform at the grammys

along with whitney houston who was a free agent and agreed to a 4 trillion dollar wage cut

in order that kim kardashian wouldn't appear on the same show, but obama is busy golfing

with tiger woods, so the first lady will appear instead.  the nobel institute has simultaneously

agreed to create a new award titled 'gold prize in apparent stupidity while being able to

amass millions in paychecks whilst playing childrens games with no apparent intellectual value'.

and there we have it.  the USA.  wait.


Mon, 03/18/2013 - 17:01 | 3344426 Joebloinvestor
Joebloinvestor's picture

If there isn't a bank run the day they reopen, then they deserve the loss.


No one should trust anything from the ECB or IMF.


sorry for the DP fucking touchpad.

Mon, 03/18/2013 - 17:00 | 3344427 Joebloinvestor
Joebloinvestor's picture

If there isn't a bank run the day they reopen, then they deserve the loss.


No one should trust anything from thge ECB or IMF.

Mon, 03/18/2013 - 17:00 | 3344430 SoundMoney45
SoundMoney45's picture

Exit the Euro now.

Mon, 03/18/2013 - 17:28 | 3344540 Citxmech
Citxmech's picture

JFC - anybody holding any more Euros in a bank than they absolutley need to pay bills is an idiot.

Kinda reminds me of that joke where the Lord keeps sending rescuers to the person on his roof in a flood waiting for  God to save him. . .

Mon, 03/18/2013 - 17:01 | 3344432 alphamentalist
alphamentalist's picture

Full-scale banks runs (not the limp-wristed half-assed ones they've had so far), riots, and maybe a civil war or two in europe by the end of summer. ja, ja, ja. das ist gut!

Mon, 03/18/2013 - 17:01 | 3344435 Tirpitz
Tirpitz's picture

Didn't the initial Greek bailout plan envision an amount of some ten billion dollars, too? Now we're at more than twenty times as much, with no end in sight.

Mon, 03/18/2013 - 17:05 | 3344450 lolmao500
lolmao500's picture

Cyprus is the new Greece. Soon enough in Greece : 60% unemployment for 18-25 years old... big pharma not sending drugs or blood into the country... people cutting every tree in sight to heat their homes...

Yeah this is gonna be good...

Mon, 03/18/2013 - 17:31 | 3344549 machineh
machineh's picture

Astroglide is the new Vaseline.

"I'm walking behind you."

Mon, 03/18/2013 - 17:02 | 3344436 kaiserhoff
kaiserhoff's picture

Like watching a monkey try to fuck a football.

Mon, 03/18/2013 - 17:12 | 3344484 DonutBoy
DonutBoy's picture


Mon, 03/18/2013 - 17:41 | 3344599 Stoploss
Stoploss's picture

10 monkey's 1 football.

Mon, 03/18/2013 - 17:02 | 3344440 OptionNinjaNYC
OptionNinjaNYC's picture

New York Times Headline Next Week: Cyprus Exits The EU. Merkel Gloriously Fingers Herself. Berlusconi Caught Fucking a Unicorn.

Mon, 03/18/2013 - 17:04 | 3344443 lolmao500
lolmao500's picture

I hope it passes and destroys the EU. This scam has gone on long enough.

If it passes, it will also piss off the mob... and the mob will off people for way less than a few billion $$$...

Mon, 03/18/2013 - 17:06 | 3344451 tony bonn
tony bonn's picture

whatever the eurogroup said was one enormous lie wrapped within a deception, buried within a bucket of goat shit.....

you will go blind trying to read such feces....

Mon, 03/18/2013 - 17:10 | 3344473 Ourrulersknowbest
Ourrulersknowbest's picture

Ireland got shit on...we took it like good European bitches.
Spain and Italy and Portugal took it like bitches.
(Cyprus) or is that Russia? Might just show us how to grow a fucking pair of balls.
One can hope.....

Mon, 03/18/2013 - 17:16 | 3344493 SDShack
SDShack's picture

I'll just repost what I already posted on a couple of blogs this morning because it just shows the bankers realized they screwed the pooch on this one. They are desperately trying to find a way to kick the can. Learn it, and you can beat them. But it won't be painless.

You are buying the false paradigm. You have to start thinking like a banker to learn how to defeat them. You assume the banks go under because of the rules. What this fiasco demonstrates is there are no rules. The rules are being made up by the powers that be so you will never get the truth from them. The only way to stop them, is to not play the game by their rules. Call their bluff. You will soon find there are more than just the 2 false alternatives that were initially presented (deposit theft, or bank failure). The rules will be re-written because the can must be kicked. The banks can't go under yet, because there isn't adequate containment of the risk if that happens. That is why you were only given 2 dire alternatives to choose from. Lose 10% (bad) or lose all (worse). Bankruptcy is not a viable alternative because the bankers lose. The bankers will rewrite the deal so they don't lose. Bank on it.

Mon, 03/18/2013 - 17:17 | 3344500 e m m
e m m's picture

Deposits below EUR 100.000 are guaranteed. *


* again, until further notice

Mon, 03/18/2013 - 17:57 | 3344637 Bam_Man
Bam_Man's picture

They did not however say "100% guaranteed".

More like "93% guaranteed" or perhaps "96% guaranteed".

 or "I did not have sexual relations with that woman... Ms. Lewinsky."

Mon, 03/18/2013 - 17:18 | 3344501 ArkansasAngie
ArkansasAngie's picture

We are all Cypriots now.  


EU ... IMF ... Fedury ... they are all the same.


Let the banks fail ... let the banksters embrace moral hazard and kiss their paper assets good bye

Mon, 03/18/2013 - 17:19 | 3344505 forrestdweller
forrestdweller's picture

my diagnosis is that banks have been invested with  parasites called sociopaths.

since these parasites cannot be treated and thus the banks cannot be healed, there is only one solutions.

we will have to wait untill they are all at work, and then come up with the universal monsanto problem solver.

but then they might just become resistant.

Mon, 03/18/2013 - 17:22 | 3344518 Byte Me
Byte Me's picture

Is that IT?

Is he too much of a pansy to sign his name to an official document?

For his info, the Ruskis like using 210Po when they're teed off..

Mon, 03/18/2013 - 17:34 | 3344562 machineh
machineh's picture

Olli Rehn, we hardly knew ye!

Mon, 03/18/2013 - 17:39 | 3344581 dracos_ghost
dracos_ghost's picture

Yeah, "All your base are belong to us" would've been easier than all that other verbage.

Mon, 03/18/2013 - 17:22 | 3344519 Seasmoke
Seasmoke's picture

i would hope that everyone is protected on the 1st 100,000 in their account

Mon, 03/18/2013 - 17:24 | 3344526 Euro Monster
Euro Monster's picture

"The Eurogroup takes note of the authorities' decision to declare a temporary bank holiday in Cyprus on 19-20 March 2013 to prevent the collapse of the financial sector" 


There you go! Fixed it for ya! :)

Mon, 03/18/2013 - 17:26 | 3344532 FinalCollapse
FinalCollapse's picture

Dobriy den, tovarischi!

Our glorious Navy will at your shores shortly. We will start shooting practice aiming at your banks and later at your government buildings.

Please vote accordingly.

From Russia with Love


Mon, 03/18/2013 - 17:27 | 3344536 machineh
machineh's picture

The Eurogroup continues to be of the view that small depositors should be screwed differently from large depositors and reaffirms the importance of fullishly guaranteeing deposits below EUR 100.000, until our next press release.

OMG, these thumb-suckers are like children.

Seventy years of NATO supervision has infantilized them.

Mon, 03/18/2013 - 17:27 | 3344539 MFLTucson
MFLTucson's picture

Come on, cover their paper with more paper you print!  The whole game is a joke so lets get on with it.

Mon, 03/18/2013 - 17:37 | 3344563 Edward Fiatski
Edward Fiatski's picture


I know it's been a hectic day, but Fitch just downgraded at least two major Italian banks --


"The agency has downgraded Intesa Sanpaolo SpA's and UniCredit S.p.A.'s Long-term IDRs to 'BBB+' from 'A-' and Viability Ratings (VR) to 'bbb+' from 'a-'. The Outlook on the Long-term IDRs is Negative. Intesa Sanpaolo's and UniCredit's Short-term IDR have been affirmed at 'F2' and their Support Rating at '2'. The banks' Support Rating Floors (SRF) have been revised to 'BBB' from 'BBB+'. Agos Ducato SpA's (Agos) and Banca Nazionale del Lavoro's (BNL) Long-term IDRs have been downgraded to 'A-' from 'A'. The Outlooks are Negative. BNL's and Agos's Short-term IDRs have been affirmed at 'F1'. Fitch has affirmed the Support Ratings of Banca Monte dei Paschi di Siena (MPS), Banco Popolare, ICCREA Holding (ICCREAH) and Unione di Banche Italiane - UBI Banca (UBI Banca) at '2' and SRFs at 'BBB'. The Long-term IDRs of MPS and Banco Popolare have been affirmed at 'BBB' and their Outlooks revised to Negative from Stable. A full list of rating actions is at the end of this rating action commentary.

RATING ACTION RATIONALE ---- The downgrades of Intesa Sanpaolo's VR and Long-term IDR reflect Fitch's view that the bank's credit profile is closely correlated with the sovereign's...

Italy, 9.9% depositor haircuts coming your way!

Mon, 03/18/2013 - 17:38 | 3344578 Tyler Durden
Tyler Durden's picture

Always follows sovereign downgrades, in this case the March 8 downgrade to BBB+.

Mon, 03/18/2013 - 17:39 | 3344582 Edward Fiatski
Edward Fiatski's picture

Priced-in in other words, but it's relevant given current depositor theft shenanigans in the Eurozone.

Mon, 03/18/2013 - 17:37 | 3344574 Mr Anderson
Mr Anderson's picture

Soon the new trending twitter hashtag will be #BANKRUN  for the countries of Cypus, Spain, Portugal, and Italy.  Then within a week we'll be reading it in english

Mon, 03/18/2013 - 17:47 | 3344621 youngman
youngman's picture

I bet they eliminate all Russian visas too....Ukrainian also I assume a few of those bad boys are there too....I think these bankers and finance ministers are going to get a Russian Econ 101 lesson in the future....

Mon, 03/18/2013 - 17:53 | 3344632 Fix-ItSilly
Fix-ItSilly's picture

Why is no one commenting how crazy this EZ "solution" will result in 140% debt/GDP ratio with the #1 industry in Cyprus, finance, eviscerated?  Sure the depositor haircut is awful, but so is the rest of the plan!

Mon, 03/18/2013 - 17:59 | 3344650 Herdee
Herdee's picture

There's another big problem with this Cyprus situation.Once you've put this idea into European people's minds that your even willing to go to extremes if necessary and go after the first 100,000 of savings(even against your own guarantees)it brings with it the message that we'll do anything we want to anybody.Even if you reduce or change the ruling on the first 100,000 you can bet that the next time that there is even the slightest hint of financial turmoil anywhere in Europe that people will clean out the ATMs and their bank accounts very quickly.Even now,if I lived in Europe,I'd be switching a lot of my money over to a U.S. Dollar account and into gold somewhere safe.

Mon, 03/18/2013 - 18:13 | 3344696 GOLDTRADERRR





Another European Domino

I am not going to spend much time providing the details of the events unfolding in Cyprus since the readers of this site are all well aware of those by now.
I do wish to note a couple of things however.
First - We are watching the inevitable effects of the experiment in socialism when it reaches its logical conclusion. When generations are either taught or have it implied to them that they can allow their governments to run up ruinous levels of debt and yet suffer no consequences whatsoever, they have little to no incentive to throw out the political leaders who hold the actual purse strings. The cradle to grave policies of the nanny state are not sustainable over the long haul. The reason is clear - politicians make promises to pay that they cannot keep. Eventually there is not enough money to cover the promises and the government is forced to borrow to the point that it can no longer afford to pay the rate of interest that creditors demand to compensate them for the risk.
We all know that the proposal to confiscate up to 9.9% of the savings accounts of those who have worked hard to amass that money is nothing more than government sanctioned THEFT. Spare us the insults of calling it a "tax" and thereby seeking to justify this reprehensible policy. People use banks because of one reason and one reason only - TRUST. Take that away and you have destroyed the foundation of the banking system. 
Put yourself in the place of an average European citizen who is watching this debacle unfold before their eyes. Would you feel the least bit secure if you had now been awakened to the fact that your government's leaders had spent the nation into bankruptcy and were suggesting that as part of the solution to their folly that those same fools who ran up the debt in the first place now be permitted to raid your personal savings account to somehow solve a problem of their creation? What would you do in their situation? I tell you what I would do; I would immediately begin transferring money out of banks in any of those nations which had been on the receiving end of bailouts from the ECB and the IMF. I would move that money into gold and would not think twice about doing it. If those deposits are no longer sacred, then what is to prevent futures politicans from raiding them whensoever they please?

Once again we have collusion between the financial elites that run the monetary system and the big banks. I have nothing but scorn and contempt for these large banks who gorged themselves on various government bonds and are now in the position of watching their balance sheets go to hell in a handbasket as the value of those bonds plummet. What really makes my blood boil however is that these banks have adopted a mentality that they can go running and screaming like spoiled children to their respective political leaders to use the PUBLIC's MONEY to save them from their own damned stupidity and greed. 

Excuse me, but I was once naively of the opinion that the banks existed to make loans to the public. Apparently that is no longer the case - now the banks exist in order to see money taken from their depositors to save their own rear ends for buying debt that no one in their right mind would have purchased.

I do wish to add however, that even though I am disgusted at this unholy alliance between the big banks and the monetary masters, the people in these respective nations do bear some culpability in this matter; they are not without any blame whatsoever. Last time I checked these people vote and they voted to put enough politicians in power to continue spending. As long as the people keep putting the same kind of irresponsible, short-sighted lackeys into positions of power, why should they expect these leaders to change their ways. Those who would ruin their own nations for the sake of short-term political gain deserve to be unceremoniously thrown out of office.

By the way, America, are you watching what is happening here because we are following in the same trajectory as many of these Euro Zone nations.



Mon, 03/18/2013 - 19:50 | 3345080 lotsoffun
lotsoffun's picture

and it's better in the USA?   wait.  be patient.  it's coming and it's no better.

infact - take a look at the social security trust fund.

it was already here for a long time.


Mon, 03/18/2013 - 18:15 | 3344712 little buddy bu...
little buddy buys the dips's picture only takes one you tubed video of a banker swinging from a lamp post in the bank parking lot...

Mon, 03/18/2013 - 18:20 | 3344728 Monkeyfister
Monkeyfister's picture

So, those Rich CEO Tax Evaders and Russian Billionaire Oligarchs keep all their loot in one huge account at a single Bank, instead of lots of spread-out, smaller accounts? That doesn't seem like a Top-10 Wise Job-Creator Practice to me.

Mon, 03/18/2013 - 18:47 | 3344837 grunk
grunk's picture


Who's that? ABBA?

Mon, 03/18/2013 - 19:15 | 3344919 QQQBall
QQQBall's picture

Wonder what Iceland thinks?

Mon, 03/18/2013 - 20:15 | 3345125 falak pema
falak pema's picture

The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below EUR 100.000. ....

This latter clause is bedrock and its nationally guaranteed by all governments in all countries. How the Eu and Cyrpus could renege on this accross the board commitment, making the government action illegal wrt to euro agreement, is beyond me. 

Now they have to back peddle bringing this group down to 0% and pissing off the Ruskis by falling back to the 15%  on foreign despositors.

fun n games on a botched up job...I hope those ruskis don't start popping off these cypriot politicians and bankers; they are capable of retaliatory action. There is the "polonium" connection, after all.

Looks like this is the swan song of the tax paradise banking scam that was Cyprus banks! 

One down, ten to go in Eurozone!

Mon, 03/18/2013 - 21:19 | 3345355 Golden_Rule
Golden_Rule's picture

Just think, our sanctions on Iran caused a 20% depreciation in their currency.  Whether they had it in a bank, their pillow case, or up their ass they lost 20% of their funds overnight. 

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