After suffering a 4.5 Billion euro loss as part of Greece's Eurozone debt restructuring plan, it is Cyprus that is getting bent over. EU Finance Ministers in conjunction with the IMF have come up with a brilliant way of solving their fiscal problems. They are simply going to skim 6.7% out of all Cypriot savings accounts, 9.9% out of any account worth more than 100,000 euros, a move expected to net 6.6 Billion euros.
Run On The Banks
Of course, as you can well imagine, consumer confidence in the Cypriot banking sector has hit zero. Despite bank imposed limitations on ATM withdrawals of $400 euros, the Cypriots are flocking to their financial institutions a la "It's a Wonderful Life". This move effects not only your run of the mill Cypriot, but also thousands from other EU countries that have moved to Cyprus along with their life savings in their retirement.
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