Page 1 of 2 12 LastLast
Results 1 to 15 of 30
Like Tree3Likes

Thread: The Euro: Cyprus in Crisis

  1. #1
    Girl Crush Mrs. Campbell's Avatar Mrs. Campbell is offline
    Join Date
    Sep 2005
    Location
    Here...
    Posts
    28,678
    Credits
    331,752,124

    Exclamation The Euro: Cyprus in Crisis

    Crisis talks underway to find plan B for Cyprus | euronews, world news

    What do we know....


    Emergency meetings are being held between political and financial leaders in Cyprus in a frantic bid to find a solution to its bailout crisis.

    It has been sparked by parliament’s rejection of a one-off tax of up to nearly 10 per cent on savings over 100,000 euros. The levy is a condition for a 10 billion euro bailout.

    Although the plan was changed to exempt savers with less than 20,000 euros, parliament still said no, leaving the prospect of its banks facing insolvency.

    Germany’s Finance Minister Wolfgang Schaeuble has warned those banks may never reopen after an extended public holiday:

    “One has to explain to the people of Cyprus that the Cypriot economic model namely to lure financial assets to Cyprus by low taxes and convenient legal frame conditions has failed. The reason: Cypriot banks are insolvent and the Cypriot state scarcely has access to international financial markets.
    Now we have to solve that problem.

    We cannot finance this model by the taxpayer’s money of other eurozone-members. In this way it is not sustainable economically. Hence Cyprus has to fulfil certain conditions as other countries too.”

    Cypriots claimed the levy would have set a precedent for savers losing their money in the rest of the eurozone.

    But even the most stalwart supporter is at a loss to see how Cyprus can find the extra six billion euros it needs as a prerequisite for its bailout.
    Juan Dan likes this.
    Our Queen went to sleep, her people left to weep....in song she lives on.



    Long Live the Queen!

  2. #2
    Girl Crush Mrs. Campbell's Avatar Mrs. Campbell is offline
    Join Date
    Sep 2005
    Location
    Here...
    Posts
    28,678
    Credits
    331,752,124
    - Do you think the euro is on a death march?

    - Can it survive?

    - Should it survive and what will it take?



    Our Queen went to sleep, her people left to weep....in song she lives on.



    Long Live the Queen!

  3. #3
    where de crix Oneshot's Avatar Oneshot is offline
    Join Date
    Apr 2003
    Location
    Brick City, NJ
    Posts
    24,668
    Credits
    40,160,677
    The Euro will work because it is a tax on the "rich people" who have more than 20K. So the socialist will be happy, it only affects Cyprus residents, those evading taxes, and those chasing high interest rates so the rest of Europe will be happy. The people who relocated their pensions to Cyprus cause they retired will be pissed as fukk though.

  4. #4
    Registered User Lucianite is offline
    Join Date
    Jul 2006
    Location
    Somewhere
    Posts
    7,579
    Credits
    82,398,092
    Do people still use the individual countries currency ?
    like is there still the british pounds or the french francs in use ?

  5. #5
    Girl Crush Mrs. Campbell's Avatar Mrs. Campbell is offline
    Join Date
    Sep 2005
    Location
    Here...
    Posts
    28,678
    Credits
    331,752,124
    Quote Originally Posted by Lucianite View Post
    Do people still use the individual countries currency ?
    like is there still the british pounds or the french francs in use ?
    The Brits did, can't think of any other EU member who has held on to theirs.
    Our Queen went to sleep, her people left to weep....in song she lives on.



    Long Live the Queen!

  6. #6
    Dragon Singh IslandmixUSA's Avatar IslandmixUSA is offline
    Join Date
    Jan 1998
    Location
    South Beach
    Posts
    17,886
    Credits
    -477,888,512
    I wish they try that SHIT here

  7. #7
    Registered User antiguad is offline
    Join Date
    Apr 2012
    Location
    Antigua
    Posts
    1,152
    Credits
    42,073,171
    The Euro will last. The most serious issues have only come up with it in the last 3-4 years. Next year, things will begin to look up and fewer people will be ####################ing about leaving the euro.

  8. #8
    LB
    Peace Love n Pretty Tings LB is offline
    Join Date
    Apr 2010
    Location
    At the Crossroads
    Posts
    19,466
    Credits
    57,234,971
    Cyprus reaches 'painful' solution with EU to secure bailout and avert bankruptcy

    NICOSIA, Cyprus - Cyprus clinched a last-minute solution to avert imminent financial meltdown early Monday after it agreed to slash its oversized banking sector and inflict hefty losses on wealthy depositors in troubled banks to secure a 10 billion euro ($13 billion) bailout.

    The deal, described by the country's politicians as "painful", was agreed with euro finance ministers in Brussels just in time. The European Central Bank had threatened to cut off crucial emergency assistance to the Cyprus's embattled banks after Monday if no agreement was reached.

    Without that funding, Cyprus's banks would have collapsed, dragging the country's economy down with them and threatening the small Mediterranean island's membership of the 17-strong group of European Union countries that use the euro — all of which would have sent the EU's markets spinning.

    "It's not that we won a battle, but we really have avoided a disastrous exit from the eurozone," Finance Minister Michalis Sarris said in Brussels.

    Markets in Europe reacted positively, opening sharply higher, and the euro was back near $1.30.

    The mood in Nicosia was more sombre, however.

    "This decision is painful for the Cypriot people. This decision was a defeat of solidarity, of social cohesion, which are fundamental freedoms, fundamental principles of the European Union," Parliament President Yiannakis Omirou told AP.

    "So as soon as possible we have to prepare our economy to go out from the mechanism and the troika," he said, referring to the bailout agreement and the three-member delegation from the European Commission, International Monetary Fund and ECB who oversee implementation of bailout measures.

    Banks in Cyrpus have been closed for more than a week in Cyprus while politicians wrangled on how to raise 5.8 billion euros ($7.5 billion) to qualify for the rescue. An alternative was needed after the country's lawmakers resoundingly defeated the initial plan which would have seized up to 10 per cent of funds in people's accounts in all banks.

    While cash has been available through ATMs, many machines have quickly run out. Daily withdrawal limits of 100 euros were imposed on ATMs of country's two troubled lenders, Laiki and Bank of Cyprus, on Sunday. All banks are scheduled to reopen Tuesday.

    Under the new plan, the bulk of the funds will be raised by forcing losses on wealthy savers in two of the country's banks, with the remainder coming from tax increases and privatizations.

    Laiki, the country's second-largest bank, will be restructured, with all bond-holders and people with more than 100,000 euros in their accounts facing significant losses. The bank will be dissolved immediately into a bad bank containing its uninsured deposits and toxic assets, with the guaranteed deposits being transferred to the nation's biggest lender, Bank of Cyprus.

    Deposits at Bank of Cyprus above the 100,000 euro insured level will be frozen until it becomes clear whether or to what extent they will also be forced to take losses. The money from those deposits will eventually be converted into bank shares. German Finance Minister Wolfgang Schaeuble said he expected a bit more than 50 per cent of savings at Bank of Cyprus will be involved in the swap.

    It is not yet clear how severe the losses would be to Laiki's large bank deposit holders, but the euro finance ministers noted the restructure expected to yield 4.2 billion euros overall. Analysts have estimated investors might lose up to 40 per cent of their money.

    The plan agreed Monday does not need extra approval from Cyprus's parliament because the losses are part of a restructuring of the island's banks — which would come under legislation passed last week — and not a tax.

    To further secure Cyprus's economy, the size of the country's banking sector — worth up to eight times the country's gross domestic product of about 18 billion euros— must also be drastically reduced , said Jeroen Dijsselbloem, who chairs the meetings of the eurozone's finance ministers.

    The international creditors also said the country's business model of attracting foreign investors, including many Russians, with low taxes and lax financial regulation had backfired and needed to be reformed. The country would also have to cut its budget, implement structural reforms and privatize state assets.

    Russia's prime minister on Monday slammed the deal, saying the agreement was tantamount to theft: "In my opinion, the stealing of what has been stolen continues there."

    Moscow has been worried about the crisis in Cyprus with Russian citizens holding as much as 20 billion euros ($26 billion) in Cypriot banks.

    Russian Deputy Prime Minister Igor Shuvalov also expressed concerns over the impact of Monday's decision.

    "Despite all the assurances that we're receiving from the European Commission we fear that this (decision) could affect the stability of the euro, the stability of the eurozone and would send shockwaves to deteriorate the situation on the whole," he said.

    Germany's Schaeuble, however, rejected the idea that the deal was a defeat for European solidarity.

    "Cyprus is in a serious crisis, it needs help; Cyprus is getting that help," he said. "Europe is showing solidarity, Europe continues to show solidarity, but aid only makes sense and is only responsible when it overcomes the causes that lead to such crises."

    He insisted that the deal was "the best possible way for Cyprus out of this crisis ... but it still is not a comfortable way."

    Several national parliaments in eurozone countries such as Germany must approve the deal, which might take another few weeks. EU officials said they expect the whole program to be approved by mid-April.

    Cyprus has been shut out of international markets for almost two years. It first applied for a bailout to recapitalize its ailing lenders and keep state finances afloat last June, but negotiations stalled. The uncertainty around the tiny nation of about 800,000 had shaken the entire eurozone of 300 million people, even though Cyprus only makes up less than 0.2 per cent of the eurozone's economy.

    The new measures are likely to deepen the recession in Cyprus.

    "Nobody doubts that the Eurogroup decision and the agreement for our country's loans from the troika is a very painful agreement," said Nicholas Papadopoulos, head of Parliament's finance committee. "The consequences for the Cypriot economy and the daily lives of all the citizens will be seen in practice
    ~ If you make the mountain any bigger you wont be able to move it later

  9. #9
    Registered User OverLord Strum's Avatar OverLord Strum is offline
    Join Date
    Apr 2004
    Location
    13th Amendment
    Posts
    18,190
    Credits
    51,621,448
    The Euro has destroyed so many countries.

    How can everybody use one currency successfully when some eurozone economies WILDLY differ in output? Europe IS NOT A COMMON MARKET.
    Strum has a Grizzly Bear Rug in his living room.

    It's not dead however...It's just SCARED TO MOVE.

  10. #10
    Girl Crush Mrs. Campbell's Avatar Mrs. Campbell is offline
    Join Date
    Sep 2005
    Location
    Here...
    Posts
    28,678
    Credits
    331,752,124
    Quote Originally Posted by OverLord Strum View Post
    The Euro has destroyed so many countries.

    How can everybody use one currency successfully when some eurozone economies WILDLY differ in output? Europe IS NOT A COMMON MARKET.
    There is no political unity, the Euro just unify banks. The Russians won't be happy at all about this deal. Since they are the over a 100K depositors.
    Our Queen went to sleep, her people left to weep....in song she lives on.



    Long Live the Queen!

  11. #11
    where de crix Oneshot's Avatar Oneshot is offline
    Join Date
    Apr 2003
    Location
    Brick City, NJ
    Posts
    24,668
    Credits
    40,160,677
    doesnt anyone know if the bond holders are losing their money also?

  12. #12
    Juan Dan
    Guest
    Quote Originally Posted by Oneshot View Post
    doesnt anyone know if the bond holders are losing their money also?
    dont know bout that

    yet was it you or allan greenspan aka sankofaa who said that financial situation in greeece could NEVER affect merca?

    still feel the same way?

    I am unsure if mercan media are reporting the REAL financial situation
    wall street DROPPED this morning on news over there

  13. #13
    DSP
    Heri DSP's Avatar DSP is offline
    Join Date
    Nov 2005
    Location
    EALW
    Posts
    8,416
    Credits
    75,559,240
    Besides some agriculture what does Cyprus produce? Places like Germany and China MAKE things, which is why their economies are doing okay. EU as a whole can do all the financial gymnastics they want, but until others in the Eurozone start PRODUCING more and carrying their own weight, Germany will carry most of the weight and things will continue to drag slowly.
    Unfortunately, stupidity and ignorance can be entertaining.

    Goodle this you 50 year old crusty vagina





    --oh yes jigger boozers ever lasting wahr with the "lovers of empresses and hafrican queens" should be ashamed ~jigga boozy aka Carlo Pagan

    --I like disrespect especially ones that dont involve cursing and nugga nugga nugga watch subject matter ~jigga boozy aka Carlo Pagan

  14. #14
    Registered User OverLord Strum's Avatar OverLord Strum is offline
    Join Date
    Apr 2004
    Location
    13th Amendment
    Posts
    18,190
    Credits
    51,621,448
    Quote Originally Posted by Chinks View Post
    There is no political unity, the Euro just unify banks. The Russians won't be happy at all about this deal. Since they are the over a 100K depositors.
    The Euro would work if the countries GDP and debt loads were within a few percentages of each other. Look how whitey mashin up people because of the bad idea of unifying banks!
    Strum has a Grizzly Bear Rug in his living room.

    It's not dead however...It's just SCARED TO MOVE.

  15. #15
    where de crix Oneshot's Avatar Oneshot is offline
    Join Date
    Apr 2003
    Location
    Brick City, NJ
    Posts
    24,668
    Credits
    40,160,677
    Quote Originally Posted by Jigga Boozy View Post
    dont know bout that

    yet was it you or allan greenspan aka sankofaa who said that financial situation in greeece could NEVER affect merca?

    still feel the same way?

    I am unsure if mercan media are reporting the REAL financial situation
    wall street DROPPED this morning on news over there
    dont know if i said that, but nah it wont affect America, America's problems are bigger than Greece

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •