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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Black Forest's picture

Who the fuck is the Eurogroup?

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!

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!!!!!!

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.

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.

Nussi34's picture

Eurogroup? Who voted for them?

StychoKiller's picture

Less rapeage, but rapeage nevertheless!

Catflappo's picture

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

Everybodys All American's picture

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

Relentless's picture

Eurogroup - sponsored by KY

scatterbrains's picture

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

hack3434's picture

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

toys for tits's picture

 

http://i47.tinypic.com/m79c9u.jpg

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.

OpenThePodBayDoorHAL's picture

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

e m m's picture

Did Germany complain when they were buying Mercedes from them?

Edward Fiatski's picture

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

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!

 

Croesus's picture

Coming soon to a USA near me:

http://www.fromthetrenchesworldreport.com/argentina-makes-grab-for-pensi...

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?"

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.

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.

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.

 

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.

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.

SoundMoney45's picture

Exit the Euro now.

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. . .

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!

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.

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...

machineh's picture

Astroglide is the new Vaseline.

"I'm walking behind you."

kaiserhoff's picture

Like watching a monkey try to fuck a football.

OptionNinjaNYC's picture

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

 

http://wallstreetfool.com/2013/03/18/vix-bid-gold-closes-above-1600-eur-...

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 $$$...

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....

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.....

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.

e m m's picture

Deposits below EUR 100.000 are guaranteed. *

 

* again, until further notice

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."

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

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.

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..

machineh's picture

Olli Rehn, we hardly knew ye!

dracos_ghost's picture

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

Seasmoke's picture

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