Cyprus President Says Parliament Will Still Reject Bailout Plan, "Making Other Plans"
So much for the credibility of Reuters' Greek FinMin "unnamed" source. After the newswire presented the latest Eurogroup statement as if it was one where all deposits under €100,000 will be tax exempt, which was not the case, CNA reported a little while ago that the government has submitted a revised bill according to which only deposits under €20,000 would be exempt, and everything between €20K and €100K would still see the previous 6.75% levy. The parliamentary economic committee would discuss the bill ahead of plenary a debate scheduled for 6 p.m. Cyprus time. However, now as MarketNews reports, that is likely moot.
- CYPRUS PRESIDENT: PARLIAMENT BELIEVES BAILOUT PLAN UNJUST, GOVERNMENT MAKING OTHER PLANS.
- CYPRUS PRESIDENT: PARLIAMENT WILL REJECT BAILOUT PLAN –MNI
Amusingly enough, this echoes what Russia's former FinMin Alexei Kudrin just said, who added fuel to the fire:
- KUDRIN SAYS CYPRIOT TAX WON’T PASS, GOVT COALITION IS CRUMBLING
Of course, as we said nearly a day ago, if there is no consensus on the term of the bail-in, it is assured that there will be no vote today either, and possibly none tomorrow, and so on, which means that with both banks and stock markets closed through Friday, Cyprus may end up in permanent stasis indefinitely.
Alternatively, parliament may just vote, reject the bailout, tipping the country into bankruptcy, forcing it to exit the Eurozone, and finally pushing Europe beyond the Rubicon. From a somewhat more credible Reuters:
Cyprus's parliament was set to reject a divisive tax on bank deposits in a vote scheduled for Tuesday, a government spokesman said, a move that would push the island closer to a default and banking collapse.
A weekend announcement that Cyprus would break with previous practice and impose a levy on bank accounts as part of a 10 billion euro ($13 billion) EU bailout prompted some turmoil on European financial markets on Monday.
Cypriot and euro zone officials have sought to soften the initially proposed levy of 6.75 percent on depositors of up to 100,000 euros and 9.9 percent above 100,000 to ease the burden on small savers.
But passage of the bill in the 56-member chamber, where no party has a majority, was unlikely and it was not clear if the vote would even go ahead later on Tuesday if leaders were sure it would be rejected.
"It looks like it won't pass," Cypriot government spokesman Christos Stylianides told state radio.
The House of Representatives was expected to meet at 1600 GMT (12:00 EST) . Rejection of the measure would effectively block a bailout that Cyprus needs to keep its banks afloat and government paying wages and welfare.
Finally, just to give a taste of what would happen if things work out as hoped, the country's Central Banker, appropriately named Panicos, said Cypriot banks stand to lose more than 10% of their deposit base within a matter of days if a levy on bank deposits is imposed. "If the draft bill passes, we would see deposit outflows of 10 percent or maybe more in the first few days," central bank chief Panicos Demetriades told the Cypriot parliament's finance committee. He added that the central bank's and the European central Bank favoured scrapping the levy for all deposits below 100,000 euros, in line with the position expressed by euro zone finance ministers late on Monday.
He is absolutely correct, except for being a little dyslexic - what he meant was 100%.
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Okay, time to let those stupid and pathetic Greeks in Cyprus fall over the cliff. They want it. They get it.
The black cygnet hatched Friday. It will be a full grown swan within two months.
Screw you......get your own money bitchez!
If Merkel whats some money from me....she can come mow my lawn and take out the trash.
http://www.youtube.com/watch?v=Zvl9N9GdraQ
Deposits under 100K were guaranteed. That's it. 100K+ are free game for the banksters, Russian or not.
Anyone have any spare computer monitors you're not using?
http://www.youtube.com/watch?v=Y7ZN2F_7K7U
actually a deposit with 100k+N was garanteed up to 100k and free game is only for the rest of N
It's actually 100k per depositor, per bank - e.g., if you have a joint account, it's 100k x number of account holders (except for societal accounts) - here's how it pans out, from Banco de Portugal: http://translate.google.pt/translate?hl=pt-PT&sl=pt&tl=en&u=http%3A%2F%2... (where it says "The", in the tables, it should be "A")
Of course, everybody is entitled to a free bailout by german's taxpayers. And to 100%, of course! If we dare to only contribute 80% and demand that you at least also shoulder some burden, then "we want your money". WTF??? Let Cyprus go bk - we germans are so fed up with paying for everyone. We will give them ZERO - and demand ZERO. Now, that would certainly be a better deal for Cypriots, no?
That is better.
2014, era of the new German Mark.
Oh really?
So tell me, did you ever paid up your WW2 debts and destruction, by any chance? You know, the stolen and destroyed wealth and physical patrimony; economy, infrastructure and society rebuilding; deaths, physical and psychological damage compensation; financial losses, including loss of profits; etc. and so forth?
Because, as far as I know, it went pretty much like this: your victims ended up paying for their own recovery, either straight by themselves or through Marshall Plan (which ended up meaning pretty much the same, for worse, btw), and, in the mean time, you got yourselves a brand spanking new country, as "punishment" for your evil doings, courtesy of said victims, all the while promising to pay back something like a mere 5% of your annual growth...
Max Keiser actually mentioned Germany's war debt to Greece, regarding Greece's bailout, estimating it --just for stolen gold and forced upon and never paid back bank loans-- at around, at least, 500 hundred billion Euros, by today's value...
what day this week does the market open?
The markets are open.....but the bank is still closed.
Introducing you to Cyprus, the first new Russian state in decades.
Yes ... Cyprus and Greece both, natural allies of Russia with the shared traditional Christian Orthodox religious faith
They should both leave not just the euro-zone, but the EU ... make a deal with Gazprom and Russia for the undersea resources with which both countries are in fact quite rich
Default on the bondholders
Start a new life ...
That may well be the 'making other plans' ...
God speed to the Cypriots if they have the courage to pull the plug on this shite
"Making other plans."
Do these plans include bulldozers?
lol...we are the deciders of fairness & law on the fly!
€20,000.01...pay up you elitist suckers!
They cannot reopen the banks now!! All deposits will now be automatically converted into equity of the bank. Prospectus is in the mail. Depositors entitled to dividends "as, when and if declared" and subject to the rights of bondholders.
they must quit the euro and introduce a new currency before opening the banks.
CYPRUS PRESIDENT: "I did not have #%* with that Cyprus bank account...I wish the press would let me get back to work focussing on the people's business..."
Even by exempting deposits under 20k, they're still shredding the deposit ins. scheme which is the biggest concern. And also by making that exemption, they create a shortfall in the 5.8bneuros needed. interesting times, got my beer and popcorn ready.
On the plus side, it should give a much-needed boost to Cyprus' burgeoning rope industry. Lamppost sales should also see a bump.
my dick gets hard just thinking about these motherfuckers hanging from light posts, all I can hope is that day isnt too far off.
Banker lynchings - the new Viagra.
Rev up the bulldozers and backhoes. Time for Cyprus to begin renovating their banks.
One per hour until Merkel cries uncle.
They will lose well over 10% when the banks open even if it doesn't pass. The threat of this happening is enough to start that much of a run ...
Yeah, not sure where he's getting 10% from. I'm thinking about pulling all my money out of the bank and I'm half a world away from this clusterfuck.
Next stop, Switzerland.
Haven't these clowns heard of a printer.
Shit this is old technology, I know cypress is behind the times, but couldn't Benny just send them one of his old ones, just on loan for a while?
Havent they been taking notice of the new normal?
The problem is this is NOT a liquidity issue. Cyprus is insolvent. In other words ... Cyprus needs big dollars every month to make payments. Cyprus has a negative balance sheet.
The only problem a printer can't fix, is an ink or paper shortage...
Anything else looks manageable!
Just ask Benny...
corzined yet-send the honorable over there to "get-er-done"
The IMF found that there wasn't the claimed money laundering going on in Cyprus.
Germany, Austria, Finland and the Netherlands don't trust the findings reached by a team of IMF experts last autumn with regard to Cypriot money laundering activities. The experts from Washington came to the conclusion that Cyprus is largely playing by the book and only minor legislative amendments are required.
http://www.spiegel.de/international/europe/imf-and-europe-disagreement-c...
I have full faith and confidence in the IMF (sarc)...
The BIS might have to step in and open up a can of whoopass.
+1 great find
So what. Meredith Whitney said yesterday she is more bullish on equities than ever in her entire life.
As the jackboot upon the neck will make one gasp for air and helpless it leaves the bankers to manipulate the pants pocket.
Would not be suprised (past the dog and pony show) the the Cyprus GOLD is within the grasp of the troika.
Cyprus current gold holdings are round 14 tons and at todays confiscation price is roughly a tweener number of 7.1 billion---as Two Minds would say
HHHHMMMMMM
http://www.24hgold.com/english/stat_country_detail.aspx?pays=Cyprus&deid...
Too bad Cyprus is land locked....or they could just put their gold on a boat.
Just out of curiosity, are American banks any healthier? What group can dictate liquidation terms to American banks?
A top of the line French bank can do the job.
Funny, I just read that one of the Dutch opposition party is asking questions why they don't tax the Dutch Savers who have money in their account.
That'd be EPIC. Amazing ZH is didn't wrote an article about that in Holland.
The Dutch...famous for their Euro soft core
Cyprus does not have any good solutions, its a choice between a hard place and a rock :
What Is Cyprus 'Plan B' - Business Insider
It will either kill the offshore banking industry of Ruski money in Cyprus or the economies of the small guy there.
Merkel has been very clear : your problem your solution; and guess what?
It will apply in ALL of peripheral Club Med!
The Cyprus bail -in will be proposed by EU to all of Club Med! Your bank debts : your Oligarchs shell up first via wealth tax!
Its your decision how to spread that around but your local oligarchy or small/ medium investors pay first; especially tax dodgers. Stop asking us Core members to bail you out, even if its via sterilised ECB printing; as we have no more good collateral in the EU!
Game over solidarity! And, if the people's appraisal and resistance to wealth taxation is perceived as elastic then it will apply also to the core!
When thieves fall out, I hope the message is clear for all of WS/CIty Q-infinity printing presses and Russian Oligarchy scam tax evasion Oligarchs.
This lady has boots meant for walking; and its election year in Deutschland!
There is a third option which is very radical: make a big deal with the Russians, become a defacto colony.
1.) Leave the EU.
2.) Allow a Russian naval base.
3.) Allow Gazprom to access the offshore oil and gas reserves.
4.) Get a full bailout by the Russians and turn down the EU/IMF/ECB offer.
5.) Don't touch deposits.
Referring to 2 above: Are you sure that the British navy will just walk from their bases in Cyprus and happily rent them to Putin? It might be a little more complicated.
Depending on the contractual arrangements with the British, they could either keep the bases or terminate the contracts.
Desperate times = desperate measures.
If this were to happen I would hope that income tax rates in Cypress were " harmonized" with Russia, in which case Cypress could quickly become the Singapore of the mediteranean
Given the close trade and financial ties with Russia, it would certainly make more sense for Cyprus to be a Russian colony than to be a EU colony. Freed from all the EU regulative garbage, it would become an offshore haven, as you said.
That'll take big balls from Putin and the GAzprom potential must be bigger than we understand today in their waters + Strategic Medit naval base should be tempting.
But putting down 30 B to bail out the Cyrpus banks, thats awesome risk taking in Nato back waters...I guess they do have that money; seen what they spend on their yachts!
Cojones ! Putin Bey if you do it!
I'm all for it falak, but do you realise that there is a majority that falls in the "tax dodgers" category here? It's not the few or the infamous 1% as OWS would put it, EVERY FUCKING BODY dodges taxes in every possible (and sometimes impossible) way. Apart from the locals and the (known) Russians Cyprus is the tax heaven for many Greeks, and many of those "Domestic" cypriot accounts are Greek money disguised as local under various legal mantles.
So what would normally look as a quest for financial justice imposed by the many upon the Oligarchy is actually a shot in the foot for the majority of people. Well, I guess one day we'll have to pay up one way or another.
I'm expecting to get junked by all the tax dodgers, ROFL...