Mike wrote:
Isn't this clause only applicable to depositors in Cypriot banks, so surely it's "pay 10% of your savings to save Cyprus" (rly 9.9% on deposits over £100,000/6.75% below £100,000), and then EU will provide a £10billion bailout package for the country.
Mr Asmussen justified the measure by saying it broadened the number of people who will shoulder the burden of the bailout. Without the measures, he said, much of it would fall on Cypriot taxpayers; by going after all large deposit holders – many of whom are Russian or British – outsiders would help fund the rescue.
Why shouldn't they, they helped create the problem.
So now you have people with over £100,000 in their banks trying to withdraw as much as possible to qualify for the lowest rate, it's no wonder they want to keep the banks shut, all in all it strikes me as a more progressive bailout than other countries have obtained, with much of the burden falling with those who can afford it:
Further measures agreed with the Eurogroup members concern the increase of the withholding tax on capital income, a restructuring and recapitalisation of banks, an increase of the statutory corporate income tax rate and a bail-in of junior bondholders.
Excluded from the international capital markets, Cyprus applied for financial assistance in June 2012 after its two largest banks sought state support, following write downs of Greek bonds amounting to €4.5 billion, as a result of the Greek sovereign debt haircut.
The Cypriot financial assistance package is estimated at 17.5 billion, of which 10 billion will be provided by the ESM and the IMF. The one-off tax levy is estimated to yield €5.8 billion, while the remaining amount will emerge from a privatization programme, a capital gains tax increase and a 2.5% increase in the Cypriot corporate tax, currently at 10%.
famagusta-gazette.com/ecb-tell-cyprus-to...uesday-p18554-69.htm
Some people are so greedy, if you had £100,000 saving 10% would be £10,000 leaving you with £90,000 savings, you're not going to starve
Who do they expect to foot the bill of the bailout? The poor, like in Greece or other countries by instituting "austerity measures" or those who can afford it with a corporation tax increases and one off levy on all deposits?
I know which I would choose.
I'd gladly send cyprus 10% of my savings if they'll take a check for 33pence.
You got it wrong, its not just the people with over 100,000 who are trying to take their money out, its everyone innit.
And its not just 'savings' its every bank account including current accounts, so those with just 1000 quid in the account will lose 67.50.
% of income wise this is not a bigger burden on those who can afford it, you have it completely arse about face again Mike...those who can most afford it are the fucking bondholders who stand to lose sweet fuck all despite everything they have done.
Those with 10,000 in the bank perhaps small business owners stand to lose 675 quid. Perhaps the weeks wage for their shop employee or perhaps some money they have left in the bank on one side to pay fucking tax with...
You keep falling for the MSM divide and conquer crap again and again don't you?
I don't blame people for not understanding whats going on or the future consequences but once you have been given the info you should really start getting to grips with this.
There are people who work hard for a living Mike and they do not have mythical savings and pensions or any of that crap because they have responsibility with mouths to feed.
