Why were Cyprus bank accounts taxed and not have austerity measures done instead?

Newmoney24 · Mar 23, 2013

Why didn't Cyprus just do austerity measures like Greece?
-Did they have no austerity measures negotiate?

I feel like the ECB demanding 6-10% deposits from savings is suicide -- As now trust is lost across the eurozone and we could expect deposits to leave banks rapidly- Especially in the likes of Greece and Spain.

dealmaker · Mar 23, 2013

Quote from Newmoney24:

Why didn't Cyprus just do austerity measures like Greece?
-Did they have no austerity measures negotiate?

I feel like the ECB demanding 6-10% deposits from savings is suicide -- As now trust is lost across the eurozone and we could expect deposits to leave banks rapidly- Especially in the likes of Greece and Spain.

Because the Germans did not feel like subsidizing the Russian Oligarchs and Russian Mobsters. Cyprus is an offshore banking heaven i.e. they don't inquire as to the origin of your money and should they accidentally stumble on an information they look the other way and since people of Cyprus are also Greek there may be Greek fatigue too...

oldtime · Mar 23, 2013

Quote from Newmoney24:

Why didn't Cyprus just do austerity measures like Greece?
-Did they have no austerity measures negotiate?

I feel like the ECB demanding 6-10% deposits from savings is suicide -- As now trust is lost across the eurozone and we could expect deposits to leave banks rapidly- Especially in the likes of Greece and Spain.

ECB only demanded money, it wasn't that much, 6 or 7 billion, it was Cypress who refused to raise taxes and instead came up with the bright idea of just confiscating depositers money in the bank.

They are doing their best to blame it on the ECB, and apparently it is working.

Humpy · Mar 23, 2013

Quote from oldtime:

ECB only demanded money, it wasn't that much, 6 or 7 billion, it was Cypress who refused to raise taxes and instead came up with the bright idea of just confiscating depositers money in the bank.

They are doing their best to blame it on the ECB, and apparently it is working.

Is that you Splitt ?
Still can't spell Cyprus properly. Cypress is the tree.

Humpy · Mar 23, 2013

I don't understand why noone looks into where the Cypriot money went. Was it embezzled or loaned out to people who can't repay it or what ? Why should others like taxpayers make up the short fall and pay for the bank's mistakes ?

Put the bank's directors in jail until they cough up !!

Scataphagos · Mar 23, 2013

Quote from Newmoney24:

Why didn't Cyprus just do austerity measures like Greece?
-Did they have no austerity measures negotiate?

For the same reason we're unwilling to do spending cuts in the US.... no political will.

Grandluxe · Mar 23, 2013

But there is an austerity package too. after the tax.

Cdntrader · Mar 23, 2013

Quote from Humpy:

I don't understand why noone looks into where the Cypriot money went. Was it embezzled or loaned out to people who can't repay it or what ? Why should others like taxpayers make up the short fall and pay for the bank's mistakes ?

Put the bank's directors in jail until they cough up !!

they doubled down on Greek Bonds! You can't make this stuff up if you tried.

Humpy · Mar 23, 2013

Quote from Cdntrader:

they doubled down on Greek Bonds! You can't make this stuff up if you tried.

An alternative explanation is that it is a E6 billion heist of the century and all legal.
The Soros's of this world are laughing all the way to the ( you've guessed ) bank !! While the sheep bleat ineffectually baaaaaaaaar baar !!

oldtime · Mar 23, 2013

Quote from Humpy:

Is that you Splitt ?
Still can't spell Cyprus properly. Cypress is the tree.

Cypress is the American spelling

gives it a little more color