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Cyprus Capital Control Details Revealed

Tyler Durden's picture




 

As of now, the banks are still expected to open tomorrow; some of the details of the capital controls to be put in place have been leaked (via Phileleftheros):

  • *CYPRUS CONTROLS APPLY TO ALL ACCOUNTS, CURRENCIES
  • *CYPRUS BANK CONTROLS INCLUDE CURBS ON CASHING CHECKS
  • *CYPRUS BANK CONTROLS TO BE IN FORCE FOR 7 DAYS
  • *CYPRUS CURBS INCLUDE BAN ON ENDING TIME DEPOSITS
  • *CYPRUS CURBS TO INCLUDE PAYMENTS ABROAD

So no outflows allowed to a foreign country (cough Russia cough) and for only 7 days (Pluto Standard Time?); furthermore, talk is that carrying cash of over EUR3,000 across the border wil be banned.

 

Via Philenews,

The restrictions will be placed on transactions when banks are open a decree issued by the Ministry of Finance. Then we present the provisions of the Ordinance provided that changes may be made, as yet not announced officially. Since the opening of bank risk and deposit outflows because under these conditions created an emergency situation, and because for ensuring public order and public safety and for overriding reasons of public interest, the Minister of Finance, in exercise of the powers conferred by Articles 4 and 5 of the restrictive measures in trade in Case of Emergency Act of 2013, upon the recommendation of the Governor of the Central Bank will issue a decree provides for the following:

 

A) No cashing checks. Provided that may deposit checks into account.

 

(B) Any non-cash payment or money transfer outside the Republic, except:

  • (i) payments for commercial transactions within the ordinary activities of the client by presenting documentary evidence. Not require the production of documents for amounts not exceeding €500.
  • (ii) payment of salaries of employees working outside the Republic
  • (iii) subsistence expenses up to €10,000 per quarter tuition and persons studying abroad and first-degree relatives of persons who have their habitual residence in the Republic, with the presentation of relevant evidence. Provided that all payments made to the beneficiary.
  • (iv) Payments or transfers outside the Republic by debit or credit card or prepaid, to €5,000 per month per person for each institution.
  • (v) Payments of claims by insurance companies
  • (vi) or other payments and money transfers is ensured provided that prior approval of the Commission

(C) Any termination filing deadline before the specified end date unless the product will be used to repay the loan within the same institution.

 

(D) The transport of euro banknotes or foreign currency in excess of the amount of € 3000 or the equivalent in foreign currency per person per trip abroad. The Director of Customs shall implement this measure.

 

(E) Financial transaction, payment or transfer, which is not completed before the commencement of this Ordinance, subject to the provisions of this Order restrictive measures.

 

(F) prohibit a credit institution to perform cashless payments or money transfers that aim to circumvent the restrictive measures.

 

(G) The restrictive measures apply to all accounts, payments and transfers, regardless of the currency.
 
Exceptions.

 

Excluding restrictive measures:
(A) All money transferred from abroad to the Republic.
(B) Diplomatic Missions
(C) financial transactions on their own behalf institution
(D) Payments authorized by the Commission ?
(E) The Republic ?
(G) The Central Bank. This Order is valid for a period of seven days commencing from the date of publication in the Official Gazette.

 

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Wed, 03/27/2013 - 10:18 | 3381108 machineh
machineh's picture

7 days, 7 weeks, 7 years

Wed, 03/27/2013 - 10:19 | 3381116 Ethics Gradient
Ethics Gradient's picture

Until the banks open?

Wed, 03/27/2013 - 10:21 | 3381130 machineh
machineh's picture

Until they make the controls stricter to plug leaks.

This is just the beta version of CapControls 1.0.

Now recruiting testers ...

Wed, 03/27/2013 - 10:26 | 3381176 gmrpeabody
gmrpeabody's picture

Given a little more time, the capital control measures will soon resemble Obama care, 1700 pages of what you can't do but they can. Too funny.

Wed, 03/27/2013 - 10:29 | 3381200 McMolotov
McMolotov's picture

It's always the end result of statism run amok. Everyone becomes a criminal of some sort in the eyes of "the law."

Wed, 03/27/2013 - 10:39 | 3381230 AlaricBalth
AlaricBalth's picture

 

Dijsselbloem: claim on Cyprus gas

Should Cyprus more gas exploitation, then the proceeds to repay the emergency loan of € 10 billion, says Minister Dijsselbloem.

This is from Financial Daily in the Netherlands one hour ago. Looks like another European resource grab.


 

Wed, 03/27/2013 - 10:40 | 3381241 McMolotov
McMolotov's picture

It's like dealing with loan sharks.

Wed, 03/27/2013 - 10:43 | 3381252 notbot
notbot's picture

Reopened in 7 days, because by then everything will be fixed and people surely won't run on the banks.

Who are they kidding???

 

 

Wed, 03/27/2013 - 10:48 | 3381273 gmrpeabody
gmrpeabody's picture

The banks will re-open tomorrow and operate during normal business hours. However, due to safety concerns, customers will not be allowed back in until such time as their welfare can be guaranteed.

Wed, 03/27/2013 - 10:54 | 3381292 Cdad
Cdad's picture

Flash:  Bernanke comments...hearing that The Federal Reserve Bank is NOT considering capital controls.  Prefers capital outofcontrols, instead.

Wed, 03/27/2013 - 10:58 | 3381303 redpill
redpill's picture

This is when the snake starts eating its own tail. What we're about to see unfold in Cyprus is going to be very ugly.

Wed, 03/27/2013 - 12:24 | 3381663 Rubbish
Rubbish's picture

Countdown to Armageddon.

Wed, 03/27/2013 - 10:47 | 3381275 espirit
espirit's picture

Just a coincidence?

 "United States prosecutors have asked Liechtenstein to hand over data on foundations and other financial vehicles as part of their investigation into tax evasion by wealthy Americans."

By Friday...

http://news.yahoo.com/u-asks-liechtenstein-data-swiss-banking-probe-074807421.html

Wed, 03/27/2013 - 11:00 | 3381316 toys for tits
toys for tits's picture

Cyprus failed to macro-manage their economy and now believe that their situation will improve by micro-managing it?

Wed, 03/27/2013 - 11:52 | 3381522 Nussi34
Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Wed, 03/27/2013 - 11:58 | 3381549 Nussi34
Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Wed, 03/27/2013 - 10:43 | 3381257 Pladizow
Pladizow's picture

How do the Cypriots say "Gold Bitchez!"

Wed, 03/27/2013 - 13:37 | 3381954 Jonas Parker
Jonas Parker's picture

Molon labe?

Wed, 03/27/2013 - 10:39 | 3381243 machineh
machineh's picture

How is Cyprus going to engage in costly undersea gas exploration, when it has no capital?

Answer: foreign partners will demand most of the equity.

Let the natural resource looting begin!

Wed, 03/27/2013 - 10:42 | 3381258 JPM Hater001
JPM Hater001's picture

"carrying cash of over EUR3,000 across the border wil be banned."

Me and 100 of my best friends are going to go for a boat ride...each carrying $3000

Wed, 03/27/2013 - 10:55 | 3381294 Augustus
Augustus's picture

Since the foreign partners will provide ALL of the funding for development, it is simple greed for them to want to get the investment returned.  everyone knows that foreign capital can never be reclaimed from a broke state.  Maybe they can make a deal with the ruskies.

Wed, 03/27/2013 - 10:42 | 3381251 Van Halen
Van Halen's picture

Holy crap! The balls of these bankster motherfuckers!

Wed, 03/27/2013 - 11:21 | 3381276 AlaricBalth
AlaricBalth's picture

This report was just released by the Congressional Research Service on March 15, 2013.

Europe’s Energy Security: Options andChallenges to Natural Gas SupplyDiversification

http://www.fas.org/sgp/crs/row/R42405.pdf

It discusses Europe's dependence on Russia (36%) for Natural Gas and the need to diversify. 

"If trends continue as projected, Europe’s dependence on Russia as a supplier is likely to grow. And, while it could be in Europe’s interest to explore alternative sources for its natural gas needs, it is uncertain whether Europe as a whole can, or is willing to, replace a significant level of imports of Russian natural gas. Some European countries that feel vulnerable to potential Russian energy supply manipulation may work harder to achieve diversification than others."

Bankrupt Cyprus. Claim their NG. Reduce vulnerability to Russia.

Good timing huh?

Wed, 03/27/2013 - 10:49 | 3381281 Divine Wind
Divine Wind's picture

 

 

Brahahahahaa

I bet Turkey has some things to say about this.

The territorial disputes are nowhere near being settled.

 

Wed, 03/27/2013 - 10:20 | 3381123 Super Broccoli
Super Broccoli's picture

if banks open tomorrow and cap control stops in a week, i swear i eat my wallet !

Wed, 03/27/2013 - 10:30 | 3381210 McMolotov
McMolotov's picture

Is it the one that says, "Green Mother Fucker?"

Wed, 03/27/2013 - 11:14 | 3381368 Alpo for Granny
Alpo for Granny's picture

Say it again. Say withdraw again. I dare you I double dare you motherfucka say withdraw one more goddamn time.

* Apologies to ZH poster Say What Again for stealing his thunder but granny has has too much knob creek this morning and could not help herself*

Wed, 03/27/2013 - 10:57 | 3381301 Dr. Engali
Dr. Engali's picture

Eat your iPad..it's more nutritious.

Wed, 03/27/2013 - 14:29 | 3382270 Colonel Klink
Colonel Klink's picture

Hope it's an iWallet, I hear they're edible.

Wed, 03/27/2013 - 10:21 | 3381126 localsavage
localsavage's picture

What you don't think they will fix this the first time...cough Greece cough Greece

Wed, 03/27/2013 - 12:22 | 3381649 viahj
viahj's picture

quote machineh: "7 days, 7 weeks, 7 years"

7x3=21

Wed, 03/27/2013 - 13:39 | 3381967 Jonas Parker
Jonas Parker's picture

More like 7 to the 7th power...

Wed, 03/27/2013 - 10:18 | 3381113 mdtrader
mdtrader's picture

7 days because the banks probably won't last 7 days lol.

Wed, 03/27/2013 - 10:19 | 3381117 TeamDepends
TeamDepends's picture

This time we will definitely read the fine print.

Wed, 03/27/2013 - 11:09 | 3381353 Urban Redneck
Urban Redneck's picture

and break out your SWIFT handbook, the whole google-speak "financial transactions on their own behalf institution" is loophole big enough to run an entire bank-run/robbery through...

Wed, 03/27/2013 - 10:25 | 3381118 Id fight Gandhi
Id fight Gandhi's picture

7 fat years, 7 lean years...

This really has to be the beginning of the end of the Euro.

Wed, 03/27/2013 - 10:19 | 3381121 frenchie
frenchie's picture

need large family, each takes a bag of 2999 and hop

 

Wed, 03/27/2013 - 10:23 | 3381149 machineh
machineh's picture

After 7 days, they likely will chop that limit to 1,000.

Cypriots better get while the getting is good.

It only gets worse.

Then it's "Bailout 2" time.

Wed, 03/27/2013 - 10:25 | 3381165 kliguy38
kliguy38's picture

There will be no way to stop capital controls.........

Wed, 03/27/2013 - 23:59 | 3384265 StychoKiller
StychoKiller's picture

Bring a couple of yer buddies to the bank (Smith & Wesson!)

Wed, 03/27/2013 - 10:27 | 3381182 McMolotov
McMolotov's picture

Cypriots are now terrrrists if they try to control their money in "unauthorized" ways. Coming soon to a bank near you.

Wed, 03/27/2013 - 10:22 | 3381150 Cdad
Cdad's picture

Long Mediterranean pirates here.  

Wed, 03/27/2013 - 10:23 | 3381155 Gmpx
Gmpx's picture

I can offer my family members - 500 EUR each per hop

Wed, 03/27/2013 - 10:20 | 3381122 LoneStarHog
LoneStarHog's picture

May people leave the country with The Family Jewels, or is castration mandatory?

Wed, 03/27/2013 - 10:21 | 3381139 Winston Churchill
Winston Churchill's picture

Not if you leave your first born as collateral.

Wed, 03/27/2013 - 10:21 | 3381125 the iD
the iD's picture

if you keep taking it, expect them to keep giving it to you.

Wed, 03/27/2013 - 10:35 | 3381222 j0nx
j0nx's picture

/thread. Same here in the states. As long as people keep slurping it down then they are gonna keep feeding it to them. It really does always boil down to that and has throughout history. Not sure why people think what's going on now is any different than what was going on 500 years ago...1000 years ago...10,000 years ago.

Wed, 03/27/2013 - 17:13 | 3383082 JohnnyBriefcase
JohnnyBriefcase's picture

I also don't understand the idea that the past cannot happen again. Like we are somehow immune from thousands of years of human history. Why? Because we have cars and computers? really?

 

What a solid foundation!

Wed, 03/27/2013 - 10:22 | 3381132 NoWayJose
NoWayJose's picture

Pssssst - Cyprus is an ISLAND.... you don't carry anything across the border without getting wet...

Wed, 03/27/2013 - 10:23 | 3381154 localsavage
localsavage's picture

And don't try to take your gold out by boat.  We all know how that ends.

Wed, 03/27/2013 - 10:23 | 3381156 Winston Churchill
Winston Churchill's picture

Pssst.......Cyprus is a divided island with Turkish lira used on the other side of

the green line.

Wed, 03/27/2013 - 10:26 | 3381180 NoWayJose
NoWayJose's picture

Bullish for Turkish banks!  Buy equities!

Wed, 03/27/2013 - 11:04 | 3381329 e-recep
e-recep's picture

turkish banks are not in better shape than any other bank in the world. (maybe a little better than cypriot banks for the moment.) nearly all of them have plans where you deposit your physical gold and get a signed paper IOU in return. but they insist, the gold must be PHYSICAL, not that GLD shit.

Wed, 03/27/2013 - 10:22 | 3381140 HD
HD's picture

So what did Cyprus get out of all this exactly? Just gets to stay in the EU?

Why was accepting this "bailout" better than default?

Wed, 03/27/2013 - 11:56 | 3381189 fuu
fuu's picture

Can't afford any of those pesky credit events right now.

Wed, 03/27/2013 - 10:35 | 3381220 NoDebt
NoDebt's picture

That's a good question.  The answer seems to be that you get access to further bailouts down the road.  And believe me, they are GOING TO NEED ANOTHER BAILOUT.

 

Wed, 03/27/2013 - 10:22 | 3381145 Alex Lionson
Alex Lionson's picture

It is good to be a Russian citizen these days, all borders are open for you, you are exempted from all kinds of bans and controls, cough, cough... 

Wed, 03/27/2013 - 10:22 | 3381151 SubjectivObject
SubjectivObject's picture

Speaking of capital controls, what's up with silver this morning?

It shows a severe divirgence from gold.

Wed, 03/27/2013 - 10:24 | 3381159 zilverexmachina
zilverexmachina's picture

The passion of the Panicos

Wed, 03/27/2013 - 10:26 | 3381169 TumblingDice
TumblingDice's picture

Doesn't Russia have a fleet nearby to help enforce these controls?

Wed, 03/27/2013 - 10:26 | 3381171 Super Broccoli
Super Broccoli's picture

will there be U-boats patroling around the island ?

Wed, 03/27/2013 - 11:15 | 3381372 FeralSerf
FeralSerf's picture

Absolutely -- Israeli ones.

Wed, 03/27/2013 - 10:26 | 3381177 zapdude
zapdude's picture

The theater is on fire and the authorities have chained and padlocked the exits. 

We will be seeing more orchestrated massacres like this in the future, sooner and closer to home than any of us would like.

Wed, 03/27/2013 - 10:36 | 3381226 machineh
machineh's picture

Disco inferno!

a/k/a Dancing with the EUrotards ...

Wed, 03/27/2013 - 10:26 | 3381179 Stuart
Stuart's picture

and before 2016 is over, coming to US bank near you.   Get your physical gold while they're hot. 

Wed, 03/27/2013 - 10:27 | 3381181 machineh
machineh's picture

'payments for commercial transactions within the ordinary activities of the client by presenting documentary evidence. Not require the production of documents for amounts not exceeding € 500.'

This is the beginning of import licensing. Over-invoicing of imports is a way to export capital.

Watch Cypriots start importing gold-plated tungsten by the ton!

Wed, 03/27/2013 - 10:28 | 3381185 mdtrader
mdtrader's picture

SPX getting ready to go green in preparation for tomorrow's bank lines in Cyprus! 

Wed, 03/27/2013 - 10:30 | 3381203 NoWayJose
NoWayJose's picture

I think there will be a fair bit of positioning today, and a lot of positions covered on both sides.  You can expect bank lines to be the top global headline - and they will also talk to the angry and scared people in those lines.  That should ripple to the other EU countries...

Wed, 03/27/2013 - 17:19 | 3383109 JohnnyBriefcase
JohnnyBriefcase's picture

No, the top "news story" tomorrow will be a celebrity/gay something/sex scandal/new shooting.

Wed, 03/27/2013 - 10:28 | 3381190 NoWayJose
NoWayJose's picture

From RanSquawk - 


Cyprus Parliament Speaker Omirou says prospect of capital flight is 'real problem'

Oh really....

Wed, 03/27/2013 - 11:39 | 3381468 HondaFullOfSilver
HondaFullOfSilver's picture

Capital flight is  real problem.  No jobs, industry, anyone willing to loan you money an non-usurious rates, rule of law, and hunger are ever bigger problems.  Zimbabwe is a great example of what happens when you screw over your monied citizens..  Unlike Cyprus, Zimbabwe had other things going for it in terms of mining and food production.

They both end up as failed states.

 

Wed, 03/27/2013 - 10:29 | 3381199 Crash Overide
Crash Overide's picture

Do you think it would be different if the people in Cyprus owned a lot guns?

Wed, 03/27/2013 - 10:38 | 3381238 Van Halen
Van Halen's picture

It wouldn't be different because people here own a lot of guns and they haven't done a goddamned thing while they've watched their rights vanish and the country go to hell in a handbasket. Guns don't make a difference - until the population gets hungry. Once you cut the food off, all hell breaks loose.

Wed, 03/27/2013 - 10:49 | 3381280 RichardENixon
RichardENixon's picture

Or until the smart phones are shut down. Everywhere I go all I see is people furiously typing into smart phones. Most of them are behind the wheel of a moving car.

Wed, 03/27/2013 - 10:30 | 3381201 Stockmonger
Stockmonger's picture

People, they have to do this.  Cyprus needs to borrow imaginary euros from Frankfurt in order to survive.  There's no way that they could print an imaginary currency of their own.

Next you'll be saying they should adopt Bitcoin.  That's nonsense, that would be totally out of the control of central bankers.

Wed, 03/27/2013 - 10:29 | 3381202 btb2010
btb2010's picture

the sale of 5 carat D flawless diamonds just exploded in Cyprus

Wed, 03/27/2013 - 10:33 | 3381204 btb2010
btb2010's picture

0

Wed, 03/27/2013 - 10:34 | 3381212 Sudden Debt
Sudden Debt's picture

AND POOF GOES THE EUROPEAN OPEN BORDER POLICY!!!

THAT IS AGAINST EUROPEAN LAW!!!

YOU CAN SUCK MY SJENGEN THIS!!

Wed, 03/27/2013 - 11:01 | 3381321 earnyermoney
earnyermoney's picture

The LAW is a piece of paper with which to wipe your arse.

Wed, 03/27/2013 - 11:09 | 3381350 e-recep
e-recep's picture

laws are for the plebians.

Wed, 03/27/2013 - 10:36 | 3381221 Van Halen
Van Halen's picture

Ha! The Cypriots thought that just the "Evil Rich" would be hit with 40%! Now it's more like 80% and it's going to be the average citizen watching their accounts go up in smoke!

By tomorrow it will be something different. No private property ownership, perhaps?

Wed, 03/27/2013 - 10:36 | 3381223 casaananda
casaananda's picture

Just buy gold. Forget ALL fiat.

Wed, 03/27/2013 - 10:38 | 3381234 ZeroPoint
ZeroPoint's picture

They need 7 more days for the remaining wealthy to get their cash out before total collapse.

 

 

Wed, 03/27/2013 - 10:39 | 3381239 laomei
laomei's picture

Hahaha, far too easy.

 

(iv) Payments or transfers outside the Republic by debit or credit card or prepaid, to € 5.000 per month per person for each institution.

Anyone smart keeps accounts in many names.

(i) payments for commercial transactions within the ordinary activities of the client by presenting documentary evidence. Not require the production of documents for amounts not exceeding € 500.

Annoying, but this is easy easy easy.  how about 1000 transactions of 499?

 

(v) Payments of claims by insurance companies

As if insurance companies are not desperate to get the hell out to ensure they survive?  Again, easy loophole.

 

(iii) subsistence expenses up to € 10.000 per quarter tuition and persons studying abroad and first-degree relatives of persons who have their habitual residence in the Republic, with the presentation of relevant evidence. Provided that all payments made to the beneficiary.

Documentation is all that's needed? So my brother Boris lives in Cyprus and in exchange for me crediting his account overseas, he's more than happy to go along with moving money to all his other brothers and sisters who I am more than happy to show documentation for.

 

This is a joke.  Any Russian money not already gone will be gone the first day.

Wed, 03/27/2013 - 10:41 | 3381249 Super Broccoli
Super Broccoli's picture

what about pepper spraying ATMs ?

Wed, 03/27/2013 - 11:55 | 3381532 Edward Fiatski
Edward Fiatski's picture

Brilliant! Altho, I don't think we're that far advanced in our implementation of the Democratic Process (tm). :)

Wed, 03/27/2013 - 10:44 | 3381267 Van Halen
Van Halen's picture

OK folks, you know goddamned well the banksters here are seeing what Europe is getting away with and dying to get in on the American action.

Bets are on! How long before we see:

The first policitian or banker come out in America and suggest this could be a possibility.

The next set of trial balloons go up.

The first crisis leading to "small, temporary, and fully refundable" seizures of bank deposits?

Let's hear your ideas!

Wed, 03/27/2013 - 10:59 | 3381308 earnyermoney
earnyermoney's picture

It's all ready on. Bruce krasting already commented on Paul Krugman's call for capital controls. Paul Krugman is a fascist shill whose mission is to foist the faux partison divide of the political elite on the sheeple. That arsehole teaches the sociopaths raping the people of this country as they attend his lectures. "Conscience of a Liberal" LOL.

Wed, 03/27/2013 - 11:05 | 3381338 Van Halen
Wed, 03/27/2013 - 11:44 | 3381483 Hobbleknee
Hobbleknee's picture

MF Global anyone?  Corzine was smart enough to act stupid, instead having bureaucrats declare a new "tax" on his behalf.

Wed, 03/27/2013 - 10:45 | 3381268 Dr. Engali
Dr. Engali's picture

Pluto standard time that's pretty funny....sadly it reminds me of my sex life lately.

Wed, 03/27/2013 - 10:51 | 3381283 mdtrader
mdtrader's picture

Why people keep buying big cap tech? When they dial in the new curriency numbers sterling 1.51, EUR 1.27 and 94 Yen, there's going to be misses and downgrades there. 

Wed, 03/27/2013 - 10:54 | 3381295 Satan
Satan's picture

Talk about slamming the barn door shut after the horse has bolted...

Wed, 03/27/2013 - 10:57 | 3381300 RealityCheque
RealityCheque's picture

Can they train the border guard dogs to sniff for gold?! Or diamond encrusted watches?

Wed, 03/27/2013 - 11:01 | 3381317 They Tried to S...
They Tried to Steal My Gold's picture

Purchase unlimited amount of Gold coins and cross the border legally.....the restrictions are on "euro banknotes or foreign currency."

 

BITCHEZ

Wed, 03/27/2013 - 11:05 | 3381341 machineh
machineh's picture

Good point.

This feature will be added to CapControls 1.1 next week.

Wed, 03/27/2013 - 12:02 | 3381545 Edward Fiatski
Edward Fiatski's picture

Heh, heh - already is - probably. Well, depends on the issuer, since Euro-denominated coins or whatever Austrian & other EU banks mint are considered currency.

Nevertheless, any gold bullion is currency to the Redshield. :)

Wed, 03/27/2013 - 11:02 | 3381323 Yen Cross
Yen Cross's picture

      ( 7 ) days = a cold day in hell...

Wed, 03/27/2013 - 11:10 | 3381354 ziggy59
ziggy59's picture

They can fly money over the borders via drones, right?

Wed, 03/27/2013 - 11:14 | 3381370 machineh
machineh's picture

From the Guardian:

The instant reaction to Cyprus's capital controls splits into two camps -- one warning that the new measures will have a chilling effect on its economy, and the other predicting that the measures will last much longer than seven days.

http://www.guardian.co.uk/business/2013/mar/27/eurozone-crisis-cyprus-ca...

'One path leads to despair and utter hopelessness, the other to total extinction. Let us pray that we have the wisdom to choose correctly.' -- Woody Allen.

Wed, 03/27/2013 - 11:31 | 3381435 Mototard at Large
Mototard at Large's picture

We will see lots more of capital controls and other methods designed to keep people from their money.

Savers and takers.  What we are seeing in Cyprus and Spain is unnerving for many people – especially savers.  The new struggle over the next few years will be between the savers and the takers.  The government, the Banks and supra-national organizations are creating new policies that say they can take your savings?  Two ex-central bankers explain where your savings may go as the financial crisis which started in 2008 continues to unfold.  http://tinyurl.com/d9d74qf

Wed, 03/27/2013 - 11:35 | 3381453 diana_in_spain
diana_in_spain's picture

but they can probably buy bitcoins and then sell them in another currency

Wed, 03/27/2013 - 11:38 | 3381465 Herdee
Herdee's picture

I've noticed that both Washington politicians and the FED haven't said a peep to both the State of Utah and to the Shawnee Nation about allowing gold to be used as legal tender in their jurisdictions.Can't fight the individual States and Native Indian Tribes?Maybe the storage of gold on Shawnee territory has immunity from confiscation?

Wed, 03/27/2013 - 13:17 | 3381850 earnyermoney
earnyermoney's picture

Think I'll ask Liz Warren if that holds for Cheerokee's as well.

Wed, 03/27/2013 - 11:55 | 3381531 Falconsixone
Falconsixone's picture
The Lute is the dominant instrument of the Cypriot traditional music. Sighforus Apollo for letting the British jew bankers in.
Wed, 03/27/2013 - 11:56 | 3381544 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Cyprus is now permanently infected with eurpies(euro) after being being euraped by the ECB. A lesson for the rest of the partners practicing risky banking sex with the ECB using valuations based on bad debt instruments and toxic derivative trades.

Speaking of capital controls

http://www.cnbc.com/id/100594872

G4S Readies Guards as Cypriot Banks Prepare to Open A British security firm that transports cash for Cypriot banks is working round the clock, sending teams out with police protection to stock bank machines and readying guards for when banks reopen on Thursday.

The world's largest security firm, G4S, moves cash and will provide guards for Cypriot lenders including Bank of Cyprus and Cyprus Popular Bank, the two biggest, which are to be combined and see large depositors' accounts frozen under a bailout agreed at the weekend.

Cypriot banks have been shut for more than a week while the government worked out the bailout and will stay closed until Thursday to prevent a run. Meanwhile, Cypriots have been queuing to withdraw cash from automatic teller machines, with limits at some shrinking down to 100 euros a day.

John Arghyrou, managing director of the Cyprus business for G4S, said its 750 employees have been working through the night, going out to replenish cash machines with police guard. Licensing rules prevented the firm from bringing in extra staff to handle the unprecedented workload.

"Demand is greater than we can provide... We haven't closed since the crisis started," he told Reuters. "I've never seen anything like it in terms of what is going on from a security perspective. I would say the workload has quadrupled because the whole system has changed."

Arghyrou would not comment on whether more cash has been flown in to replenish the vaults so that banks are ready to open on Thursday, but said he did not expect a bank run.

"People have had time to digest the agreement so maybe there won't be that scenario whereby people run to the banks to withdraw," he said.

"I don't see people panicking, I see people worrying about what the next day will hold for them, whether the next day they will have a job. I see people having a lot of questions and waiting for answers."

While the banks have been closed, businesses have been calling on the security company to find places to keep their cash and asking for guards and alarms to protect their assets.

They are also using G4S as an intermediary to bring money from overseas to pay wages and suppliers, and drawing on its systems for shipping cash to provide guarantees for payments abroad, effectively using it as a kind of bank.

The next big test will come on Thursday when 180 G4S guards will be deployed at bank branches to help handle an anticipated surge of customers demanding cash and answers.

Arghyrou said his unarmed teams had been ready to go into action late on Monday night, when a last-minute decision was made to delay the banks' opening until Thursday.

"The staff will be based outside branches and are there to control queues, if there are any queues," he said. "We will be in contact with the police. Basically it is to make the banking people feel safe and the customers as well."

G4S earns 18 percent of its 7.3 billion pound turnover from its cash transporting business, which is struggling for growth in developed markets. The rest comes from running services like prisons, manned guarding and port protection.

The firm achieved notoriety for admitting just weeks before the start of last year's London Olympics that it could not provide a promised 10,400 venue guards, hitting its profit and reputation.

Wed, 03/27/2013 - 11:59 | 3381556 diana_in_spain
diana_in_spain's picture

what is G4s?

Wed, 03/27/2013 - 12:05 | 3381578 diana_in_spain
Wed, 03/27/2013 - 12:40 | 3381711 CandaceLH
CandaceLH's picture

This is probably a stupid question. Are people with BROKERAGE accounts under the same restrictions of the capital controls as banks, ie. closed to cash withdrawls or limit amount withdrawn, atm limits etc. Thank?

Wed, 03/27/2013 - 13:02 | 3381790 NEOSERF
NEOSERF's picture

Only real question is how far you need to row to get to international waters, hand off $3K to a family member in another rowboat, and then head back to the bank for another $3K....

Wed, 03/27/2013 - 13:08 | 3381813 diana_in_spain
diana_in_spain's picture

how are they going to search people in the airports?  those body scanners dont detect cash I think

Wed, 03/27/2013 - 13:27 | 3381908 assistedliving
assistedliving's picture

A list of all SWIFT transactions ex Cyprus from Jan 1 please.  CITIBANK anyone?

Wed, 03/27/2013 - 13:41 | 3381973 dot_bust
dot_bust's picture

Now, everyone will get a quick lesson in what fractional reserve banking really means.

Wed, 03/27/2013 - 13:59 | 3382104 Skin666
Skin666's picture

BITCOIN!

Do NOT follow this link or you will be banned from the site!