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Cyprus Bailout Needs Rise By €2 Billion As Conditions Deteriorate Rapidly

Tyler Durden's picture


A week of closed banks, depositor angst, and economic malaise is creating an increasingly vicious circle for Cyprus (and implicitly the European Union). As Die Welt notes, because the economic data of the tiny 'irrelevant' island could be considerably worse than previously thought (or forecast by Troika) thanks to the distortions created this week by bank closings, several people around the Troika said the exact amount of the bailout remains uncertain and could amount to EUR2bn more than expected. With the Troika capping their handout at EUR10bn of the current EUR17bn needed (and the deposit levy reportedly filling EUR6bn of that EUR7bn hole), the need for a bigger bailout - which seems increasingly likely - will fall on Cyprus banks' depositors (or taxpayers) leading to a hard-to-beat downward spiral. Simply put, the more deposits are pulled, the more deposits need to be confiscated; and with retailer stocks running low ("will last another 2-3 days") and cash-on-delivery demanded, the real economy will "have a problem if this is not resolved by next week."

Via The Guardian,

Retailers, facing cash-on-delivery demands from suppliers, warned stocks were running low. "At the moment, supplies will last another two or three days," said Adamos Hadijadamou, head of Cyprus's Association of Supermarkets. "We'll have a problem if this is not resolved by next week."

Via Die Welt (and Google Translate),

Cyprus needs a lot more money than expected


A few hours before the emergency meeting of the situation seems to capture from bankruptcy Cyprus to deteriorate: From Troika says that money could not exceed the estimated range.


Cyprus needs for information of the "world" more money to bail out its banks and the stabilization of its national budget. Not initially agreed 17 billion euros were enough states in the field of negotiations. The exact amount is not certain. Several people around the troika said the "world" that the increased demand would amount to around two billion euros.


Because the economic data of the island nation could be worse than previously thought, additional billions are needed. One reason for the expansion of the bailout, the distortions caused by the closing of the banks, which has been going on for a week. The financial institutions will not open until next week again.


The troika of EU, European Central Bank (ECB) and International Monetary Fund (IMF) had agreed originally with Cyprus on a rescue package amounting to 17 billion euros. Ten billion would provide the troika, the remaining seven will apply even Cyprus.


Almost six billion would achieve the Cypriot government by the proposed compulsory levy on savings. More money to flush tax increases, such as the increase of the corporate tax in the state coffers.




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Sun, 03/24/2013 - 12:23 | 3368582 TeamDepends
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Sun, 03/24/2013 - 12:29 | 3368596 BaBaBouy
BaBaBouy's picture

Cyprus ...

Tick... +1 Billion, Tock +1 Billion, Tick... +1 Billion, Tock ... ...

Sun, 03/24/2013 - 12:32 | 3368612 francis_sawyer
francis_sawyer's picture

Last week I was thinking about digging in to the cookie jar & spotting them the

€2 Billion... But then I got 'Stolper-ed' out on a trade & lost my cushion...


Sorry peeps ~ You're on your own... [unless you can hold on about a week ~ by then my bitcoins should cover it]...

Sun, 03/24/2013 - 12:42 | 3368659 machineh
machineh's picture

Cyprus Bailout Needs Rise By €2 Billion PER DAY As Conditions Deteriorate Rapidly

Fixed it for you. 

Not a joke, either -- progressive disclosure is an ironclad rule of goverments.


Sun, 03/24/2013 - 12:58 | 3368707 francis_sawyer
francis_sawyer's picture

Kind of like when you reach that $25,000 limit on your credit card that you piled up at 0% interest & then the bank switches your rate to 27.99% interest overnight...

Sun, 03/24/2013 - 13:31 | 3368817 Ahmeexnal
Ahmeexnal's picture

Cyprus should mint a trillion euro coin (made out of zinc of course) with Merdekill on the obverse and her daddy Adolf on the reverse.

Sun, 03/24/2013 - 16:20 | 3369333 Brokenbroker
Brokenbroker's picture

Or three of em. You going thru my mail?

Sun, 03/24/2013 - 16:10 | 3369308 zipit
zipit's picture

Used for everything from finance to body counts after a disaster to just about every other indicator that they ever mention, espeially the ones that come with a subtext of "We got this under control, there's nothing to worry about."

Sun, 03/24/2013 - 12:43 | 3368660 kushmere
kushmere's picture

Always good to see another believer

Sun, 03/24/2013 - 18:13 | 3369767 Son of Loki
Son of Loki's picture
Breaking News that Counts: Incredibly tough guy finds knife in back 3 years after stabbing


Billy McNeely, a man who recently discovered a nearly three-inch knife blade embedded in his back, three years after being stabbed five times in a fight over an arm-wrestling contest. Because this story just had to get more masculine. McNeely then walked around setting off metal detectors for three years before discovering the blade. He says he feels fine now, and of the knife, said, "I've got it in my pocket right now."


MSM's finest!

Sun, 03/24/2013 - 18:42 | 3369858 akak
akak's picture

I suspect that the people of Cyprus are starting to understand how this guy felt.

Sun, 03/24/2013 - 15:10 | 3369100 Buck Johnson
Buck Johnson's picture

You hit it right on the head, it's going exactly like that.  Also we only know what has been "figured out" by the EU at what is needed, it could be more.

Sun, 03/24/2013 - 12:28 | 3368607 MsCreant
MsCreant's picture

This needs a special one: FUBAH = Fucked Up Beyond All HOPE.

Sun, 03/24/2013 - 12:32 | 3368622 francis_sawyer
francis_sawyer's picture

My grandmother was named "Hope"... She's dead...

Sun, 03/24/2013 - 12:39 | 3368647 TeamDepends
TeamDepends's picture

How is Chastity doing?

Sun, 03/24/2013 - 12:43 | 3368658 francis_sawyer
francis_sawyer's picture


Sun, 03/24/2013 - 12:48 | 3368670 Going Loco
Going Loco's picture

Edit: Just realised I had posted a reply to Francis Sawyer.... 

Sun, 03/24/2013 - 13:30 | 3368813 e-recep
e-recep's picture


Sun, 03/24/2013 - 15:52 | 3369259 Kirk2NCC1701
Kirk2NCC1701's picture

Chastity is now Chaz. Was on Dancing With The Stars.

Sun, 03/24/2013 - 12:34 | 3368631 Ancona
Ancona's picture

At this rate, the banks can never open again, because the minute they open their doors all hell breaks loose. Tuesday will be quite interesting indeed. I smell a Cypriot exit from the union. They are probably working overtime printing new Cypriot pounds as I hack this out. Either that, or they are over-printing on old Euro notes.

Sun, 03/24/2013 - 12:48 | 3368680 philosophers bone
philosophers bone's picture

It will be interesting on Tuesday to see if the Cypriots line up at the ATMs or at the bankers' personal residences.... 

Sun, 03/24/2013 - 13:10 | 3368748 Boondocker
Boondocker's picture

Dont hold your breath....

Sun, 03/24/2013 - 13:33 | 3368825 e-recep
e-recep's picture

Only to find out that the ATMs spit out bills of a strange new currency, not Euro bills...

Sun, 03/24/2013 - 15:55 | 3369269 Kirk2NCC1701
Kirk2NCC1701's picture

Dollars, Rubles or Shekels?

Sun, 03/24/2013 - 13:10 | 3368747 Dr. No
Dr. No's picture

Why would they over print EU notes? There is a shortage of EU notes, hence their value is high.

Sun, 03/24/2013 - 13:17 | 3368772 Rip van Wrinkle
Rip van Wrinkle's picture

They can print as many Euro notes as the like. Problem is no f*cker can get hold of any!

Sun, 03/24/2013 - 14:47 | 3369059 disabledvet
disabledvet's picture

NOW you're asking the right question. "what defines bank capital." if it's no longer "how many euro notes are on deposit" then what is it? i can't think of anything other than gold actually. and that would be for ALL of Europe! needless to say "not all banks are insolvent." the first "coup by banker" in history?

Sun, 03/24/2013 - 14:52 | 3369071 Nobody For President
Nobody For President's picture

Have a friend who's fiance was named Hope.

She was killed by a drunk driver.

Sun, 03/24/2013 - 12:30 | 3368615 Banksters
Banksters's picture

This is a ritualistic sacrifice.   I'm sure draghi, lagarde, vanrumpy, and barroso are in long black robes with hoodies chanting incantations as Cyprus has a knife plunged into its heart.

Sun, 03/24/2013 - 14:58 | 3369081 richard in norway
richard in norway's picture

OK, I'm kind of stupid but Cyprus controls one side of the news headlines and the markets have been yoyoing like crazy on news coming out of Cyprus. They should have made enough money frontrunning the market to pay their bills by now. At least That's the way I would have played it

Sun, 03/24/2013 - 12:23 | 3368583 Fips_OnTheSpot
Fips_OnTheSpot's picture


Sun, 03/24/2013 - 12:24 | 3368587 ShortTheUS
ShortTheUS's picture

Anastasiades should walk into the Troika meeting room and say: Fuck You Bitchez! Then ask for Euro bank notes in all denominations to be stamped with a special seal that denotes them as being new Cypriot pound (XCP?) and shipped over to Cyprus until they can print their own currency in a few months.


As Banzai Bill would write it: PhUcK Da BAnKStErZ!

Sun, 03/24/2013 - 13:33 | 3368819 mjcOH1
mjcOH1's picture

"Anastasiades should walk into the Troika meeting room and say: Fuck You Bitchez! Then ask for Euro bank notes in all denominations to be stamped with a special seal that denotes them as being new Cypriot pound (XCP?) and shipped over to Cyprus until they can print their own currency in a few months."

He should ask for a pony and an extra $20bllion while he's at it.

Sun, 03/24/2013 - 13:44 | 3368856 Ahmeexnal
Ahmeexnal's picture

This is not the 12th century.
Printing paper money for Cyprus would take hours at most.
Cyprus is only making time for the Russian Navy to arrive and protect the island from a NATO invasion.

Sun, 03/24/2013 - 12:25 | 3368590 fonzannoon
fonzannoon's picture

this is starting to sound exactly like the london whale trade. tempest in a teapot, then a few billion more than anticipated, then it was free handjobs to whoever would help them unwind the trade.

I am just patiently waiting for the bank/insurer to leak a headline on how they are quietly trying to exit an "incredibly small" position in cyprus debt. It's coming.

Sun, 03/24/2013 - 14:45 | 3369054 nodhannum
nodhannum's picture

"free handjobs to whoever would help them unwind "?  Hell, I would like to unwind but I want more than a freak'in handjob.  Come on ECB get down on your knees!

Sun, 03/24/2013 - 12:26 | 3368594 MsCreant
MsCreant's picture

So are they adding the late fees and interest to the principal, and then charging interest on that? Cancel the fucking card!

Sun, 03/24/2013 - 12:28 | 3368608 fonzannoon
fonzannoon's picture

MsCreant I thought they just run up the bill for a while and then refi it at a fixed rate for life? 

I am not familiar with the "cancel the card" approach.

Sun, 03/24/2013 - 12:48 | 3368676 MsCreant
MsCreant's picture

I may have fucked up on this, maybe someone else can tell us.

I have watched more than one relative go BK. One had 50K debt go to 77K over the year he did not use the cards. Seems you have to not use the card for a year or you are committing fraud when you go to BK. So folks, knowing they are going BK, simply avoid all the phone calls from the creditors, wait the year, then file. The interest, fees, penalties, pile up when you don't use the card which is how the debt ballooned so much. I thought if you cancelled the card, that stopped that part of the process in its tracks. I may be wrong and if so you asked me about that very nicely.

Sun, 03/24/2013 - 13:52 | 3368885 slightlyskeptical
slightlyskeptical's picture

You don't need to wait the year before filing. Cancelling the card does nothing, as the card already can't be used. If you try to use it they will have retailer destroy it. Amex starts proceedings after 60 days. Will seize bank accounts, etc if you do not file, leaving ost people with Amex little choice.

Sun, 03/24/2013 - 17:08 | 3369540 skipjack
skipjack's picture

Wrong.  No creditor can seize anything from the debtor without first having a court judgment.  Just to get the court date often takes months, then there's the 30 day after the court's decision for the appeal, etc etc.  The process takes some time to play out.  In the meantime, the debtor needs to get a joint account with another person not named in the credit action; accounts can't then be seized.  

Sun, 03/24/2013 - 12:42 | 3368654 Going Loco
Going Loco's picture

No, too late to cancel the card.

This is just like a car crash - first you see the smashed bumper and windscreen, then you realise the suspension's gone and the engine has shifted, it goes on until you come to terms with the fact that the thing is a write-off.

Same with bankruptices in my experience. At first everyone thinks there will be a distribution and it even takes a while before the bankrupt herself realises there's nothing left for her except what she was able to steal before the writ was issued. Then as time goes on everyone realises there's only a tiny amount of recoverable assets, and then you find out they are all being taken by the liquidator as expenses, and by the time of the final creditors' meeting the only people who bother showing up are the liquidator's staff and a couple of private creditors who just want a chance to sound off about their total loss. Always the same.

Cyprus was bankrupt the moment the banks closed. Never any going back from that. Never any chance to get your money back. When Northern Rock went belly up in 2007 it stayed open until all the depositors got their money. When a bank closes it never reopens and there is never anything left for anyone except those who got out before it closed.

Sun, 03/24/2013 - 12:26 | 3368597 glenlloyd
glenlloyd's picture

By the time they have an agreement everything above 100k euro per depositor will be confiscated....

Sun, 03/24/2013 - 12:34 | 3368632 Bam_Man
Bam_Man's picture

...And the bondholders shall remain whole.

That is "The 11th Commandment".

Sun, 03/24/2013 - 12:46 | 3368664 machineh
machineh's picture

... and then the blame is assigned to bystanders and nonparticipants.

12th commandment!

Sun, 03/24/2013 - 12:27 | 3368601 Mongo
Mongo's picture

Rinse & Repeat

Sun, 03/24/2013 - 12:28 | 3368603 A Man without Q...
A Man without Qualities's picture

My guess, there was a lot of money pulled out the week before the closure and the Cypriots don't want to tell them..

Sun, 03/24/2013 - 12:28 | 3368606 Water Is Wet
Water Is Wet's picture

And I bet all you fools thought Cyprus has a problem now.  They don't have a problem for another week.  Cyprus' head of supermarkets wouldn't lie.


Sun, 03/24/2013 - 12:41 | 3368651 icanhasbailout
icanhasbailout's picture

Subcyprus is contained

Sun, 03/24/2013 - 13:05 | 3368732 akak
akak's picture

And will not spread to the broader euroconomy.

Sun, 03/24/2013 - 12:29 | 3368610 shinobi-7
shinobi-7's picture

Let's see if I understand: If I leave some money they take it although I don't know how much, If I take my money they take more... Run, must be first in line!

Sun, 03/24/2013 - 12:29 | 3368611 mikmid
mikmid's picture

I wonder if ths is purposly being done to herd all the euro sheeple into conformity with the Troika. The lesson would be that if you don't follow the Troika's demands you will end up like Cyprus. I'm sure there are many issues at stake but the one I've listed sound right.

Sun, 03/24/2013 - 13:15 | 3368763 Oldwood
Oldwood's picture

Of course we are all being herded. This is all far too stupid to be stupidity.

Sun, 03/24/2013 - 14:52 | 3369069 disabledvet
Sun, 03/24/2013 - 12:32 | 3368617 JustObserving
JustObserving's picture

By tomorrow it will be 1 billion euros more.  You go bankrupt slowly, and then very, very fast.

Sun, 03/24/2013 - 12:32 | 3368618 MsCreant
MsCreant's picture

I'll see you later, gotta make a "grocery run"..heh heh...

Sun, 03/24/2013 - 12:47 | 3368674 machineh
machineh's picture

Don't forget your 'five finger discount.'

Watch the looting start tomorrow.

Sun, 03/24/2013 - 12:31 | 3368620 fonzannoon
fonzannoon's picture

The part i don't get is the part where they can't wait for the markets to open for the "we made a deal" rally.

That is still coming?

Sun, 03/24/2013 - 12:37 | 3368623 Mike in GA
Mike in GA's picture

If an economy this tiny ($22 billion, smaller than Shreveport, LA) can cause as much havoc as now seems to be the case in Euroland, imagine what happens when Japan's situation deteriorates. (And the rest of the sick men of Europe, etc

Sun, 03/24/2013 - 13:23 | 3368791 Yen Cross
Yen Cross's picture

    You're confusing faith with size Mike.

Sun, 03/24/2013 - 12:34 | 3368633 Atomizer
Atomizer's picture

Why not give a 70% labor wage cut to the politicians who created the crisis? Let’s tilt the monetary crisis back to the planners. Pass a law on the public servants regarding Fiduciary responsibility. If you cannot maintain a balanced budget, your head is off via guillotine. There’s your fiscal solution folks!

Sun, 03/24/2013 - 13:19 | 3368776 Oldwood
Oldwood's picture

The basic flaw in all of this is in the assumption that those in power will do the right thing. That has never been their intention, regardless of what may come from their lips.

Sun, 03/24/2013 - 12:36 | 3368636 fudge
fudge's picture

("will last another 2-3 days")

Three Meals Away from Anarchy ?

Wonder if Cypriot Government can stomach lead supplements .. fuckers.


Sun, 03/24/2013 - 12:49 | 3368681 Atomizer
Atomizer's picture

This is not about Cypriot government, rather a global matter. They either return their marbles and go home or all shit is going to break loose. The very laws they passed under terrorism will land each one in jail. End of story!


Sun, 03/24/2013 - 12:36 | 3368639 gatorengineer
gatorengineer's picture

This is round 1 of bailout 1......  But of course it will be different than Greece <Sarc>

Sun, 03/24/2013 - 12:37 | 3368640 ekm
ekm's picture

Translation into american english:


Is Obama/Bernanke going to bailout cyprus or not? We're pulling all tricks that Hank Paulson did with congress in 2008, but so far it doesn't seem it's going to work.

Sun, 03/24/2013 - 12:49 | 3368682 Seasmoke
Seasmoke's picture

Sorry, you have to be FIRST if you are going to scare the people....after that, they lies are exposed with 20-20 hindsight

Sun, 03/24/2013 - 13:47 | 3368873 DosZap
DosZap's picture

Translation into american english:


Is Obama/Bernanke going to bailout cyprus or not? We're pulling all tricks that Hank Paulson did with congress in 2008, but so far it doesn't seem it's going to work.


No but the so called SEQUESTRATION did not stop OBAMAO for just forking over 500 million to the Palestinains(his relatives).

Bottom line: Their is NO Sequestration, when BennieBux is around.

Sun, 03/24/2013 - 13:50 | 3368878 ekm
ekm's picture

By now everybody should know that sequestration is simply a small reduction of expansion.

Sun, 03/24/2013 - 22:55 | 3370900 StychoKiller
StychoKiller's picture

"You'd think so, but no." -- Homer Simpson

Sun, 03/24/2013 - 12:37 | 3368642 luna_man
luna_man's picture



It pays to have one eye, ear and nostril alert and ready, at all times!!



Sun, 03/24/2013 - 12:38 | 3368644 Whoa Dammit
Whoa Dammit's picture

The ECB and the IMF won't stop till they take it all with nary a thought to all of the lives they have ruined.

Sun, 03/24/2013 - 12:39 | 3368648 icanhasbailout
icanhasbailout's picture

The final bailout figure will be coincidentally precisely equal to the total amount of deposits left in the banks.

Sun, 03/24/2013 - 12:42 | 3368655 bankonzhongguo
bankonzhongguo's picture

What EXACTLY did these banks do to have all these "bad debts" guaranteed by the sovereign and hence the ECB?

Are these investments into failed American MBS, were these defaulted civic bonds from Eastern Europe, did the money go to build a new expressway in Cyprus?

How much of ANY of this has to do with Cyprus specific debt?

What EXACTLY is being bailed out here?

It matters at this late date.

Is the deposit confiscation being vaguely used to repair or address Cypriot infrastructure or are these just to cover the gambling habits of banks who followed GS advice?



Sun, 03/24/2013 - 13:51 | 3368883 DosZap
DosZap's picture

What EXACTLY did these banks do to have all these "bad debts" guaranteed by the sovereign and hence the ECB?

The dumb SOB's bought Greek Bonds.

Sun, 03/24/2013 - 15:08 | 3369098 richard in norway
richard in norway's picture

And they believed the ECB when they were told that they wouldn't be left holding the bag

Sun, 03/24/2013 - 16:10 | 3369311 Kirk2NCC1701
Kirk2NCC1701's picture

This is the hangover & cleanup after a massive GS orgy. But keep deflecting to any and all Other causes. If ppl were allowed to realize this, then the trysts with GS and the US is suddenly passee.

Sun, 03/24/2013 - 12:42 | 3368657 USisCorrupt
USisCorrupt's picture

Looks like Jamie "I have more money than you" Dimon is looking to buy Cyprus for a place his kids can go and play.  It's all good everything has been saved. Meanwhile Jamie gets a pass from going back and telling more LIES to the Senate.

Sun, 03/24/2013 - 12:51 | 3368690 MsCreant
MsCreant's picture

I'd like to see him testify before Putin...

Sun, 03/24/2013 - 12:50 | 3368686 ziggy59
ziggy59's picture

Im no expert like Freddie Krugman, but isnt that "inflation" or have we passed inflation years ago and "Hyper Sized" It already?

Sun, 03/24/2013 - 12:51 | 3368689 PontifexMaximus
PontifexMaximus's picture

Be only alert if Draghi is NOT speaking tonight and tomorrow, all the other stuff is pour la galerie, giving hookers and catering serv. nice pocketmoney.

Sun, 03/24/2013 - 12:52 | 3368692 mendigo
mendigo's picture

Likely they've been lying about how bad things are.
When something like this collapses they are to some extent deal with reality - very painful for a bureacrat.
Then there is the desire to take other impending disasters and lump them in to make a nice tidy write off to good will.
Merkle balks a issuing more bad debt to payoff existing bad debt.
Russia will not be allowed to have undo influence - rock/hard place.

Sun, 03/24/2013 - 12:53 | 3368694 Ban KKiller
Ban KKiller's picture

No one wants the bad debt exposed. Why? They ALL hold some....I mean a lot of course. 

Sun, 03/24/2013 - 12:56 | 3368703 Byte Me
Byte Me's picture

Cyprus needs a lot more money than expected

Never saw that as a possibility.

Sun, 03/24/2013 - 13:02 | 3368724 ElvisDog
ElvisDog's picture

This is what I don't understand - no matter how many Euros the ECB lends to the Cyprus banks they will still be insolvent. By definition loaning money to pay off previous loans does not reduce the amount owed. So what's the fucking point of these bailout negotiations? It seems like the damage (complete loss of trust in any European bank) is not worth the trouble when at the end of the day the Cypriot banks will still be bankrupt.

Sun, 03/24/2013 - 13:11 | 3368753 Quinvarius
Quinvarius's picture

But!  Removing the deposit base their fractional reserve banking is pyramiding off of to pay down loans does!  That is how Christine Legarde and Merkel understand banking.

Sun, 03/24/2013 - 13:13 | 3368758 MsCreant
MsCreant's picture

That's too much common sense for e-CON-omists. 

Sun, 03/24/2013 - 13:19 | 3368779 AynRandFan
AynRandFan's picture

Better yet, taking EU bailout debt is an exchange of dischageable for non-dischargeable debt.  Lots of irony.

Sun, 03/24/2013 - 13:12 | 3368742 Quinvarius
Quinvarius's picture

Because they have been systematically looted by large connected individuals (/Cough Soros) ever since they "closed".

Sun, 03/24/2013 - 13:17 | 3368762 Blue Vervain
Blue Vervain's picture

If I've learned one thing on ZH it is this:

If your savings are in a bank you are literally entrusting your savings to an addicted gambler who has racked up vast debts they can never pay off.

Our collective life savings are a pittance compared to bank liabilities, and we will ultimately lose them.

As reported on Zero Hedge, the UK deposit guarantee will very likely be used pre-emptively to keep banks running rather than reimburse savers. But as stated the deposit guarantee is a drop in the ocean compared to their liabilities, which they are not obliged to disclose.

Deposit guarantees are just another bail-out fund and do not protect savers - they will instead be looted by banks.

Sun, 03/24/2013 - 13:19 | 3368777 MsCreant
MsCreant's picture

I liked some of what you said here. +1. I did not understand how the deposit guarantee can be used to keep the banks running. I think the guarantee is a promise, not an actual fund. If we believe the promise, everyone can breathe a sigh of relief, if not, even with the guarantee, I don't think there is enough cash to pay everyone.

Sun, 03/24/2013 - 13:42 | 3368818 Blue Vervain
Blue Vervain's picture

In the UK banks do pay into an actual fund ("Deposit Protection Fund" - it's on my mind because they advertise it every morning on national radio). But in a 2012 report Mervyn King raised the possibility that this fund can be used to keep banks solvent as a way of protecting savings. This was not my research - it was published in Zero Hedge, and I am very grateful for it.

My point is that this fund is tiny compared to UK bank liabilities. So although it could be used effectively to reimburse depositors, it will instead be used ineffectively to keep banks solvent for a brief period.

The final "kick of the can" down the road. Will they even tell us it has been used, I wonder?




Sun, 03/24/2013 - 13:49 | 3368876 ElZorillo
ElZorillo's picture

I really dont see the point in helping someone pay this months debts with the last of your money if they're not going to be able to meet next months payment either.


They are throwing this money down a bottomless pit.


Sun, 03/24/2013 - 16:17 | 3369326 Kirk2NCC1701
Kirk2NCC1701's picture

This has been said before but bears repeating:

When you 'deposit' your money into a bank, ANY bank, you have loaned them this money to use as they please. When you make A withdrawal, they are repaying you that loan. This is not the same as being a storage facility for your money or your stuff.

Sun, 03/24/2013 - 13:16 | 3368769 AynRandFan
AynRandFan's picture

It'll be interesting to see how to see how long it takes before capital flight from Europe turns into a flood into U.S. treasuries, and then into gold.

Sun, 03/24/2013 - 13:17 | 3368770 They Tried to S...
They Tried to Steal My Gold's picture

Worse than the confiscation are the CAPITAL CONTROLS.....Imagine someone saying not only have you lost 25% of your money BUT you wont be allowed to withdraw the remaining money until we say so. 


So in essense the CONFISCATION is much greater than the 25% . 



Putin should just do the right thing. Send the military in open every bank on the Island and transfer funds to the non Cypriot banks and then allow any withdrawals and let these non Cypriot banks collect from the ECB. Lastly,  have all three Cypriot banks file BK immediately and Cyprus starts from scratch and has a new currency the GYRO replaces the EURO.
What is the ECB going to do? -  not fund a non Cypriot European Bank? Check mate Cyprus - open the banks and force the wire transfers to the other banks. Then the ECB can decide if they want to end the Euro, produce actual physical money when demanded or and most likely "print new money" to cover the damage. 

Bernanke would be proud.....


Sun, 03/24/2013 - 13:20 | 3368783 Frastric
Frastric's picture

The Troika are idiots. Imposing a tax on deposits is just the same as people withdrawing their deposits. Think about it, the actual value of the deposit is reduced and we all know the banking system only works with deposits due to deposits being the only collateral of value. Either way the Troika are only making the Cypriot banking system more unstable.

Sun, 03/24/2013 - 13:55 | 3368892 DosZap
DosZap's picture

Either way the Troika are only making the Cypriot banking system more unstable.

They DO not care as long as they get theirs.

Sun, 03/24/2013 - 13:29 | 3368811 morning
morning's picture

Gapdown redux, bitchez.

Sun, 03/24/2013 - 13:35 | 3368833 Rusty Trombone
Rusty Trombone's picture

What I don't get in all this civil unrest shit is why the fuck they haven't started shooting yet.

Sun, 03/24/2013 - 13:52 | 3368886 DosZap
DosZap's picture

What I don't get in all this civil unrest shit is why the fuck they haven't started shooting yet.

They likely cannot own weapons.

Sun, 03/24/2013 - 14:27 | 3369011 Rusty Trombone
Rusty Trombone's picture

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. 

Sun, 03/24/2013 - 17:07 | 3369530 Kirk2NCC1701
Kirk2NCC1701's picture

So, no restrictions on pitchforks or ray guns. /s

Sun, 03/24/2013 - 14:27 | 3369012 Rusty Trombone
Rusty Trombone's picture

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. 

Sun, 03/24/2013 - 14:49 | 3369064 Notarocketscientist
Notarocketscientist's picture

Americans particularly the crowd on ZH have plenty of guns....... automatic weapons you name it they've got it ............ and lots of AMMO.

But the only thing they ever use their big assed guns for is the occassional foray down to the Mall  -  or to a school ---  or sometimes to a movie theatre - to OPEN FIRE on some kids.

Meanwhile back at the ranch they complain about the bankers and the govt like a bunch of OLD WOMEN

Sun, 03/24/2013 - 18:45 | 3369867 2bit Hoarder
2bit Hoarder's picture

Governor Cuomo?

Sun, 03/24/2013 - 14:46 | 3369036 Notarocketscientist
Notarocketscientist's picture

And why haven't the guns n ammo crowd on ZH started shooting yet? All I read here is how badly you are being fucked over.

Because they are COWARDS. They are like a bunch of LITTLE GIRLS in a school yard gossiping and bitching. Yadda fucking yadda fucking yadda. Basically you are bunch of fucking idiots who like the sound of typing

Sun, 03/24/2013 - 14:25 | 3369000 Notarocketscientist
Notarocketscientist's picture

What I dont get is all the guys on ZH who brag about their GUNS N AMMO and bitch about how the US police state is fucking them...

Sit on their asses and brag about their guns n ammo and bitch about how the US police state is fucking them

Sun, 03/24/2013 - 14:26 | 3369005 Rusty Trombone
Rusty Trombone's picture

All in due time, methinks.

Sun, 03/24/2013 - 13:38 | 3368838 augustusgloop
augustusgloop's picture

Bloomberg is already running a story on Personal Income and Consumer Spending "probably" going to rise for Feb... Awesome. Ramp up the mkt before week starts, knock gold & silver down and new causal relationship in the minds of the masses. 


Gold going down on Cypress solvency crisis is like hurricane insurance going down in Miami Beach with a Cat 5 hurricane approaching in 24hrs.

Sun, 03/24/2013 - 14:40 | 3369041 Debugas
Debugas's picture

cash is king - discounts when paying with cash 10%

Sun, 03/24/2013 - 17:15 | 3369577 dunce
dunce's picture

Grece collapsed when the truth came out that all the govt. financial figures were lies. Is there any reason not to belive that the true financial condition in Cyprus is not even worse  than official reports? The banks lying and the govt. swearing by them.

Sun, 03/24/2013 - 17:32 | 3369639 JR
JR's picture

‘Cyprus to lose 40 per cent of GDP by accepting bailout terms’ | Russia Today (RT)

March 24, 2013

Cyprus won’t be able to recover from the blow it’ll suffer if agrees to all of the troika’s “unprecedented” bailout terms, Cypriot economy professor, Andreas Theophanous, said an exclusive interview with RT…

A professor of Political Economy at the University of Nicosia and the president of the Cyprus Center for European and International Affairs, Andreas Theophanous, believes that the shock therapy implemented by the EU in Cyprus is the wrong solution as it’ll only worsen the economic situation in the country.  

RT: A crucial meeting is underway in Brussels as the president of Cyprus is discussing the crisis with the key figures who hold the country's fate in their hands. What's your prognosis of its outcome?

AT: It’s very difficult to make a forecast. There is a political willingness by the government [of Cyprus] to reach an agreement for the bailout with the Troika, but it seems that they are making it more and more difficult with new and new demands. The fear that exists is that in case that all demands of the troika are accepted, it’ll be very difficult for this agreement to be viable in the sense that it’ll throw the country into a huge fiscal cliff, huge recession and a vicious circle. And it’ll be extremely difficult if not impossible to get out of it.   

RT: Cyprus is desperately trying to prevent business from fleeing the country, even the Archbishop of Cyprus is reportedly planning to hold talks with foreign investors. How destructive do you predict the outflow of capital could be if the measures are implemented?

AT: You see, what has happened lately was unprecedented. When they announced the measures last week it led to a big panic. I think the economic problems of Cyprus could be addressed with a gradualist approach. These shock therapies create more problems than they resolve. We think in Cyprus that there’s a huge solidarity deficit in the European Union and in the Troika, which is much higher than any fiscal deficit or public debt of any country in the European south.   
RT: Many people now face losing up to a fifth of their life savings. How are banks planning to restore their customers' trust after something so many view as outright robbery?

AT: This is unprecedented. Cyprus lost 25 per cent of its GDP almost two years ago when it was the haircut of the Greek debt. And there has been no compensation for that. If these ideas that are being discussed are implemented – there would be another haircut of Cyprus’ GDP, which will be around 40 per cent. It’ll be impossible, I think, to get out of such a mess. I find it very difficult for this to be viable. Even if there’s agreement, even if it goes through the parliament, I find it extremely difficult for this to be viable in the next few months to come.

Sun, 03/24/2013 - 18:13 | 3369769 jubber
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