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Cyprus Parliament To Vote On Bailout This Afternoon

Tyler Durden's picture




 

It appears the Eurozone Stockholm Syndrome of absolutely (mutual, but ignore that) Assured Destruction has once again bloomed in tiny Cyprus, where capital controls have now had their one month birthday despite promises for a "very short duration" by the IMF's Lagarde, yet where people - all of whom far poorer and with nothing but a catastrophic depression to look forward to - just don't want to leave the Euro and the Belgian neofeudal kingdom. Because today, Cyprus actually has the power to say no to Europe when its parliament decides whether to back the EU bail-in out imposed on its by its EU "partners." However, as Reuters reports, it most likely will not "with approval likely from a thin majority against mounting calls for the island to exit the euro." Which means that Iceland's miraculous growth case study aside, Cyprus will only have itself and its politicians to blame next year when everyone's standard of living is reduced by 20%, then 20% the year after and so on. All in the name of making sure Deutsche Bank's spring clip loaded €55.6 trillion in notional derivatives never snaps shut.

From Reuters:

Lawmakers were due to meet in an extraordinary session to ratify the terms of the aid, which is conditional on Cyprus winding down its second-largest bank and imposing heavy losses on uninsured depositors in another. Voting was expected on Tuesday afternoon.

 

No single party has a majority in the 56-member parliament, and the government is counting on support from members of its three-party centre-right coalition which has 30 seats in total. It needs 29 votes for the bill to pass.

 

Shut out of financial markets for two years, Cyprus will fall into chaotic default if lawmakers vote down the bill, government officials have warned.

 

"We have had enough of delusions. We don't have another choice. Whoever has one should tell us what it is," Cypriot government spokesman Christos Stylianides told state radio.

You don't? The choice seems pretty clear. Then again, Mr. Stylianides will likely not remain in power if Plan B were voted through, and yes, it would mean immediate pain, but at least some hope of future growth as the Cypriot pounds returns and makes the island nation's economy competitive again. Instead, it will have to suffer 40%+ unemployment for years as it seeks to rebalance internally to be competitive with Germany. At least someone gets it. Ironically, it's the communists:

Communist AKEL, in government until it lost presidential elections in February, said it planned to vote against the bill. It has 19 seats in parliament. The socialist Edek party, with 5 seats, also said it would reject it.

 

AKEL, which had made the initial application for financial aid in June 2012, said onerous terms offered by Cyprus's EU partners were compelling enough for the island to seek alternative sources of funding.

 

"Cyprus's only option is a solution outside the loan agreement and the Memorandum of Understanding. Seeking such a solution is possibly tantamount to a decision to exit the euro," it said in a statement.

Naturally, since Germany and DB senior management have allowed it to come to a vote, the proability of an adverse outcome is zero. But at least the theatrics for the population will be enjoyable as now, instead of Europe, the people have their own politicians to thank for betraying them when the full cost of the "bailout" becomes apparent in a few months.

It also means that having had the choice to exit and not taking it, Cyprus will be on its own and will get no sympathy from anyone.

 

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Tue, 04/30/2013 - 08:06 | 3513205 firstdivision
firstdivision's picture

*yawn*  It'll pass after lots of rhetoric to the contrary.  Cyprus is Germany's little bitch now.

Tue, 04/30/2013 - 08:08 | 3513207 GetZeeGold
GetZeeGold's picture

 

 

Kinda sucks they have to pay to get screwed.....it usually doesn't work that way.

Tue, 04/30/2013 - 08:29 | 3513247 Zer0head
Zer0head's picture

looking forward to variation of this post later today

http://www.zerohedge.com/news/greek-parliament-passes-latest-austerity-vote

Tue, 04/30/2013 - 08:48 | 3513299 Deo vindice
Deo vindice's picture

There is no bondage that is so enslaving as that which men choose for themselves.

The spirit that drove the Puritans to North America from Europe is totally dead.

Tue, 04/30/2013 - 09:28 | 3513433 FL_Conservative
FL_Conservative's picture

Once a sheep, always a sheep.  BAHH!!!!!!!!!!!!!!!!!!!

Tue, 04/30/2013 - 09:54 | 3513544 NoDebt
NoDebt's picture

Avert your eyes.  Look away.  It's too late for them.  Best not to watch.  Could cause permanent emotional scars.

The handling of Cyprus will be looked upon by historians as the point at which the wheels came off the Euro.

Tue, 04/30/2013 - 10:00 | 3513567 bernorange
bernorange's picture

Parliament may be voting today, but the Bank of Cyprus has already confiscated/frozen 90% of customer savings over the 100K euro threshold:

http://www.reuters.com/article/2013/04/28/us-cyprus-bank-deposits-idUSBRE93R0BF20130428

Tue, 04/30/2013 - 08:36 | 3513264 Sudden Debt
Sudden Debt's picture

you're a woman he?....

guys usually pay... if now with money, than they pay for it with their proud, confidence or life...

Tue, 04/30/2013 - 08:45 | 3513276 SamAdams
SamAdams's picture

Poor Cyprus, there just isn't enough money created from thin-air to go around.  We appreciate your (lack of?) understanding and your kind tribute to ensure your continued debt slavery.

As for paying to play.  When Sam was single, he screened his women using methods such as "hope you brought a wallet".  Needless to say, Sam went through a lot of MSM indoctrinated, Paris Hilton wannabes before finding the mother of his child. 

What was it that King Solomon said, something along the lines of "not one in a thousand is worthy"....  Funny, Solomon had the same problem we do, 3000 years ago...

Tue, 04/30/2013 - 08:43 | 3513287 the not so migh...
the not so mighty maximiza's picture

martha stewart will pay,

Tue, 04/30/2013 - 08:10 | 3513210 ak_khanna
ak_khanna's picture

Citizens of Cyprus : 
Your savings, for which you have worked hard, spent judicially and managed to accumulate, are no longer yours. How you can access them and spend them will now be decided by those who have contributed hardly anything positive to the society, not saved a penny, infact borrowed money to spend on itself in the form of high salaries and luxuries perks, which has now to be repaid by you : Your Government.

P.S. If we are successful in doing so in Cyprus, we intend to replicate this privledge with savers around the world as it is the duty of the citizens of the country to support the governments in whatever idiocy they do.

 

http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in

Tue, 04/30/2013 - 08:14 | 3513212 mayhem_korner
mayhem_korner's picture

 

 

Must. Front-run. Capital. Controls.

Tue, 04/30/2013 - 08:17 | 3513219 mayhem_korner
mayhem_korner's picture

 

 

When these clowns say 'solution', they mean 'allow us to leave and enjoy dinner', right?

Tue, 04/30/2013 - 08:19 | 3513220 disabledvet
disabledvet's picture

Again "the good offices of the United States stand at the ready to aid you Mr. President of Cyprus." they might be alone insofar as the eurozone goes....but they are not alone. I having my doubts that their the canary in the coal mine...something so small it's hard to imagine it could cause any damage whatsoever.

Tue, 04/30/2013 - 08:24 | 3513224 GetZeeGold
GetZeeGold's picture

 

 

Stroke of a pen. Law of the land. Kinda cool. - Bill Clinton

Tue, 04/30/2013 - 08:29 | 3513221 Sudden Debt
Sudden Debt's picture

FIRST ORDER OF THE DAY!!!

WHAT'S FOR DINNER!! AND ARE THERE VEGETARIANS IN THE ROOM?!

Tue, 04/30/2013 - 08:20 | 3513229 beavertails
beavertails's picture

Ultra Bullish

Tue, 04/30/2013 - 08:22 | 3513237 Dr. Engali
Dr. Engali's picture

They will obey their banker overlords. Politicians know where their bread is buttered. They aren't about to start working for the people.

Tue, 04/30/2013 - 08:31 | 3513252 Sudden Debt
Sudden Debt's picture

The people already had enough attention during the election period. Let's not spoil them and just ignore them untill the next election round when they matter once again.

Tue, 04/30/2013 - 08:33 | 3513256 espirit
espirit's picture

The playbook is no longer secret.  Outcomes become incomes for the banksters and politicians.

Tue, 04/30/2013 - 08:33 | 3513255 agent default
agent default's picture

Politicians with a backbone are an extinct species.

Tue, 04/30/2013 - 08:35 | 3513274 Cycle
Cycle's picture

They are mostly sociopaths so if they have convinced you they have no backbone, they are just showing how good they do what they do, which is take care of themselves and useful tools. They don't have any ideals, morals, or ethics, and neither do the registered bribers that run Congress.

Tue, 04/30/2013 - 11:30 | 3514009 Renewable Life
Renewable Life's picture

Citizens who love Freedom and Liberty above all else, are ALSO an extinct species! 

If a mass majority of people weren't sooo busy trying to figure out how they can vote themselves more goodies and free shit in the short term, and more interested in the long term survival of their children and their nation, NONE of this shit would be happening!!

 

Tue, 04/30/2013 - 12:46 | 3514375 malek
malek's picture

Endangered, but not yet extinct.

Tue, 04/30/2013 - 08:33 | 3513257 pods
pods's picture

Is there any capital LEFT in Cyprus at this point?

This is like trying to close the barn door after a 30 megaton bomb went off inside.

pods

 

Tue, 04/30/2013 - 08:31 | 3513258 e-recep
e-recep's picture

The Cypriots have a quite different mentality than the Icelanders. They will yield to the Troika.

Tue, 04/30/2013 - 09:11 | 3513372 mendigo
mendigo's picture

I don't think it is a fair comparison.
I believe that Iceland did not have the same interdependence.
In effect more many of the cypriots it would be tantamount to voting to give up your job or livelihood and has a big fear factor. Are you saying they should be more self reliant and sensible like we in the us?
They will check to the eu this time. It is an abusive relationship of codependence. Interesting about the communist party talking sense - that could become very interesting.

Tue, 04/30/2013 - 08:33 | 3513265 Cycle
Cycle's picture

This is the Cypriot version of Paulson getting $700 billion for his biddibuddies from Congress by having the MSM pander a doom scenario.  The Cypriot people would be better off with Bit(on-off)coin than the Screwro. 

Tue, 04/30/2013 - 09:12 | 3513286 Ckierst1
Ckierst1's picture

Voting their nation into serfdom.  Ain't democracy grand when determined by the corrupt and the clueless?

The other day someone on these forums said that Cypriot bullion bearers were stopped when attempting to flee Cyprus and it was confiscated.  Confirmation?

Tue, 04/30/2013 - 09:15 | 3513386 Navymugsy
Navymugsy's picture

Looks like the haircuts are closer to 90% not 35%:

http://famagusta-gazette.com/bank-of-cyprus-enforces-haircut-on-uninsure...

 

Tue, 04/30/2013 - 10:10 | 3513584 steve from virginia
steve from virginia's picture

 

 

 

 

Euro = gasoline.

 

The choice is for Cyprus on one hand to exit the euro, return to its old currency and not be able to import fuel ... because no oil producer will accept it. This leaves out that Cyprus could still earn some hard currency -- euros, dollars, sterling, etc. by way of tourism and 'James Bond' intrigues. It would not gain enough to fuel tens of thousands of automobiles.

 

The choice on the other hand is to keep the euro and drive cars ... even if it means "everyone's standard of living is reduced by 20%, then 20% the year after and so on."

 

For the drivers, the cascading 20% is for 'the other guy'. Who gives a rat's ass about them ...? "I've got mine, Fuck You!" as William Burroughs put it. Logically: @ -20% in a few years there are no cars and no drivers ... and no GDP, either! People refuse to accept this! They believe instead that there will be a recovery that happens all by itself ... that 'technology' and 'frakking' will save everyone,

 

Just like offshore banking and 'James Bond-ism' saved Cyprus the first go-around.

 

The choice Europeans will make is not hard to figure out, because it is the same choice made by all Europeans whenever offered: they will drive until circumstances prohibit it. That means, they will drive even if there is another great European war, if their children starve, if they must live under a brutal dictatorship.

 

The euro was created as a fuel price hedge, and as a means to give fuel-import access to lesser European nations. Such is the euro's primary purpose. It will never be abandoned. It's also why the EU has tremendous leverage.

Tue, 04/30/2013 - 10:36 | 3513728 markar
markar's picture

IOW they will choose to "drive" right off the cliff

Tue, 04/30/2013 - 11:01 | 3513849 zrussell
zrussell's picture

They joined the ESM last summer have signed away their sovereignty. End Game. More to follow. We are just watching the writhing face of the mouse as the snake swallows it's body.

Tue, 04/30/2013 - 11:25 | 3513962 Shaten
Shaten's picture

everyone rants and raves how germany crashed cypress and cypress should leave the Euro.

And exactly how does any of that fixed the underlying issue.

Cypress banks have no capital, they are empty.

Case 1) Cypress tries to dig out without the aid package.

Sol 1) The banks are fully liquidated and only 100k per unique saver (not per account) is restored. Econmy crashes

Case 2) Leave the Euro.

Sol 2) The banks are fully liquidated and only 100k per unique saver (not per account) is restored. Savers have less buying power because of a trash currency. Economy crashes

Case 3) Take the bailout.

Sol 3) The banks are partially liquidated and only 100k per unique saver (not per account) is fully restored ans some percentage above. Economy crashes

Case 4) do something and reform the goverment(aka fire 90% of it)

Sol 4) Economy crashes but in a few years there is hope.

 

In the end it doesn't matter what they do the goverment, with the approval of the voters and the help of the bankers have drove the country into a shit hole. Until the

1) The banks a reigned in to at least a 20to1 ratio.

2) The goverment is shrunk MASSIVELY.

3) The citizens understand their is no free lunch.

It doesn't matter. It will be a shit hole. Citizens want everything for nothing, the goverment wants to get relected for giving everything, the banks want to finace everything to make money and hold the citizens money.

Sounds like a cluster,

Start by firing half of goverment, and deleting half of the goverment regulations.

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