ATHENS–Large deposit holders at Bank of Cyprus PCL (BOCY.CP) will see almost half of their deposits turned into equity at the lender as part of the country’s international bailout, a senior bank official said Sunday.
After an all day meetings Saturday between President Nicos Anastasiades and representatives from the country’s creditors–its euro-zone partners and the International Monetary Fund–it was decided that 42.5% of all deposits over 100,000 euros ($132,764) will be converted into shares as part of its recapitalisation plan, the official said. Continue reading
Cyprus is resisting pressure from the European Commission (EC) and International Monetary Fund (IMF) to sell its gold reserves to finance its “bailout.”
Yesterday the Cypriot Finance Minister said that a sale of its gold reserves was not the only option under consideration to pay down its debt and that other alternatives were being considered. Continue reading
Germany just conquered this island nation, seizing a crucial, strategic piece of real estate.
The government of Cyprus no longer rules its own country. In March, the world watched in shock as the Cypriot government prepared to obey the Germans and raid the bank accounts of its own citizens.
Why Cyprus Matters
Cyprus is a powerful watch-post for anybody who wants to survey events in the Middle East. This is precisely what Germany and Rome are interested in. Continue reading
If the raid on Cypriot depositors and subsequent bank run could happen in Cyprus, it could happen in the rest of Europe, as demonstrated. If it can happen in Europe, it can also happen in America. In Cyprus’ case, it will take generations to recover.
The euro zone’s messy bailout of Cyprus caused a mini-run on banks in many of the currency union’s 17 members in April, exacerbating the decline in lending to the real economy, data from the European Central Bank showed Wednesday. Continue reading
If you were, lets say, a sinister EU and you wanted to guarantee a supply of energy resources because you have none, how would you go about doing it?
Expanding on the relations between Cyprus and Greece pointed out by this article, one could say in a nutshell, this is how: The EU, which is ran by Germany via the “Troika”, subjugates Greece through forcing it to give up chunks of sovereign rights while simultaneously destroying the Cypriot economy for generations via bank depositor theft. While some control of both countries over their economies is retained, they forge natural relationships for a common cause (keeping Turkey and it’s revived Ottoman empire dream out of their region) that bring about resources that will ultimately be under the Fourth Reich’s EU control mechanism.
Perhaps this is too ahead-of-the-curve, but it is a very plausible outcome. Europe in general does not wish to remain dependent upon the Russian bear for all of its energy resources, nor the Middle East. This would be a life saver for them. They have no fear of economically or politically, openly raiding and plundering countries as shown in the last three years. Even if it doesn’t come under EU control, it’s also within the realm of possibility that the energy resources will be sold at very cheap prices to the EU in return for paying off country debt and regaining some sovereignty. Either way, you can look forward to the EU getting in on the action. Expect Israel to also fit into the equation as it also is a deterrence to Turkish aggression.
The Cyprus issue, energy security and the exploitation of hydrocarbon reserves in Cyprus’ Exclusive Economic Zone were examined during a meeting in Athens between the Defence Ministers of Cyprus and Greece, Fotis Fotiou and Panos Panagiotopoulos, respectively.
Fotiou also discussed with Panagiotopoulos the situation in the wider south-eastern Mediterranean region and Turkish threats against Cyprus with regard to oil exploration.
He thanked the Greek government and its people for supporting the Republic of Cyprus and for being the firm and permanent supporter of the sovereignty and territorial integrity of Cyprus and its economy, adding that “with hard work by both governments we can support one another and give hope and prospects to the people”. Continue reading
Cyprus is absolutely the template for Europe now. It is just that the template is far worse than what is narrowly imagined.
It is not the small nation of Cyprus nor is it that the specifics of the criminality that was transacted in Cyprus which is any sort of template. This is not the center of the issue. It is what Cyprus means and the horrible implications of what took place.
I cannot issue a stern enough warning here. No words that I write will adequately embrace the transgression that has taken place in Cyprus. Any thought that you have that the Cyprus experience is a lone and isolated event that will not be repeated, in some form in the future, is going to be proven wrong. Continue reading
MOSCOW, April 17 (RIA Novosti) – Russian state-controlled and private companies have not sustained any losses due to the financial crisis in Cyprus, Prime Minister Dmitry Medvedev said on Wednesday.
That refers to all “state structures and even a significant number of private companies,” he said in his address to the lower house of the Russian parliament, the State Duma. Continue reading
The amount Cyprus will have to pay to fix its financial sector jumped by €6 billion, Cyprus announced April 11. Originally, Cyprus was going to receive €10 billion from international lenders, and raise €7 billion itself. Now, the latter figure is €13 billion.
Cypriot President Nicos Anastasiades wrote to European Commission President José Manuel Barroso and European Council President Herman Van Rompuy pleading for more money, but he was ignored. Germany made it clear it was not willing to give any extra. Continue reading
Just when it appeared the news cycle had moved on from Cyprus, the island nation came splashing back yesterday with news from the European Commission: Nicosia will be made to sell around three quarters, or €400 million (US$5.2 million), of its excess gold reserves. (“Excess?” Who has too much gold?)
What’s the big deal? ask some. When a person or nation is in a financial pinch, assets have to be liquidated.
True. But with Cyprus it’s not that simple. From the outset of this crisis, Cyprus has not been in control of its own destiny. Sure, Cypriot President Nicos Anastasiades was in on most, though apparently not all, of the discussions. Cyprus’s parliament voted on this and that, and ultimately “agreed” to the bailout agreement. But it was all smoke and mirrors. In the end, Cyprus was compelled to agree to a ruinous bailout package created and prescribed by Germany in consort with the European Commission, the European Central Bank (ECB) and International Monetary Fund. Now we learn from the Trioka that as part of the bailout agreement, Cyprus will have to sell the majority of its gold.
The important point to note is that this decision was effectively made by Germany and its ECB/EC/IMF allies, AND NOT CYPRUS. Continue reading
“What Cyprus makes clear is the realization that there is not enough money in the world to bail out the banks. So to keep the political experiment called the European Union alive, the oligarchs in Brussels have now resorted to stealing depositor money.
The important point here is if they can steal it in Cyprus, they can do the same in Spain, Italy or any other country where the banks are insolvent, and the reality is that most of the global banking system is insolvent. But sometimes it takes a while for a lesson to sink in. Some people began recognizing the counterparty risk that comes with bank deposits when Northern Rock collapsed in 2007, and the point was driven home again in 2008 with the Lehman debacle.
More details about the Cyrus bank collapse are starting to emerge, Eric, and it is not a pretty picture. Depositors in those banks are going to lose a lot of money. At Laiki Bank, which was the second biggest in Cyprus, the confiscation of depositor money went from 9.95% to what officials are now saying will be 80%. Continue reading
Look around the European Union, follow the money trail and it will eventually lead back to one nation that isn’t being penalized. Hint: It’s known as the “export master” of the world and something people commonly thought was contained after sparking two of the bloodiest wars in world history. It’s looking like 1913 all over again.
I have served as a flag-man among the pirates of offshore banking. I know Cyprus well and have sailed into Larnaca in the dead of night, in small boats, on business. But in this story, the good guys and bad guys are not who you think they are.
Let me show you why the plunder of Cyprus is probably one of the most brilliant acts of wholesale theft the world has ever known, why the stolen treasure may be thousands of times greater than has been suggested, and why the names of the victims, and the full value of the loot, will remain a mystery forever.
In order to understand what has happened in Cyprus, you must first conjure, in your mind, images representing a truly colossal amount of money.
Briefcases full of cash? Think shipping containers. Bafflingly intricate networks of corporate and private wealth, shell companies, holding companies and staggering transfers between these entities and others. Think private planes and mega-yachts, too – the works – and multiply this kaleidoscope by thousands of beneficial owners, major shareholders and top executives all over the world. Continue reading
Cyprus is not the only island nation to roll out the red carpet for Russia’s riches. Since the Soviet Union’s collapse, London has welcomed Russian expatriates who made their fortunes plundering the collapsing state, but at what cost, asks a British journalist.
An island state advertises itself as the destination of choice for the super-rich – mainly from Russia – to launder their money and reputations, while enjoying the high life and low taxes. Then it discovers all is not what it seems. Continue reading
Given all the Germany-bashing over the last week, in the wake of the Cyprus bailout deal (some of it completely ridiculous), it’s easy to forget that the Germans themselves are remarkably united over the agreement. In fact, the feeling is that Germany, collectively, just got a fair bit more assertive over its eurozone policy.
On Friday, before a new agreement was finally reached and with Cyprus’ euro membership on the line, German Chancellor Angela Merkel – reportedly in an angry mood – told MPs from her coalition parties that it was wrong for Cyprus to “test” Europe and that while she preferred to see to see Cyprus stay in the single currency but was prepared for an exit. Continue reading
If it can happen in Cyprus, it can happen across more European nations as the EU and its ‘troika’ set a precedent by changing its own rules. What’s more is that if it can happen in Europe, it can happen in the United States.
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe. Continue reading
During the early hours of Monday morning, EU leaders agreed to another bailout for Cyprus. The island will receive the €10 billion (us$12.9 billion) it needs to avoid collapse without most Cypriots having money removed from their bank accounts. But Cyprus’s economy has been destroyed. The nation is left as a vassal state of the new German empire.
The deal will be painful for the whole economy. Last week, German Chancellor Angela Merkel said that Cyprus “must realize its business model is dead.” The latest bailout has ensured that realization. Continue reading