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Cyprus finance problems



BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
How will the money problems in Cyprus affect the general living and more important for us the tourists. I am going there in June so obviously concerned about prices the EU etc.
 


Chicken Runner61

We stand where we want!
May 20, 2007
4,609
Difficult to say just yet, they might leave the Euro, they may be bankrupt. Might know in a week or so.
Mind you I just heard their banks might not open for another week!
 


Cypriot-Seagull

Well-known member
Jul 15, 2011
1,153
Somewhere in Cyprus
The Government has just voted against the bailout rules set down by troika in the last hour. They are currently looking into other solutions which don't involve steeling our savings.
Tourism forecasts for this season are up and many plans are in place to help tourists avoid getting ripped off. We've learned from our mistakes from making a quick buck from overcharging and finally the government has realised how important revenue is from this sector so you have nothing to worry about.
 


BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
Thanks Cypriot Seagull I hope that you are right and if you see and old boy in Limassol with a Seagulls hat on in June come up and say hello.
 


Feb 23, 2009
22,840
Brighton factually.....
A plane has left from the UK with one million euros in cash, heading for the island of Cyprus, according to a BBC News report.
"An RAF flight is heading for the island as "a contingency plan to provide military personnel and their families with emergency loans if cash machines and debit cards stop working," said an MoD spokesman.
"We will keep this under review and consider further shipments if required.
"We are determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people"
The MoD is proactively approaching personnel to ask if they want their March and future salaries paid into UK bank accounts rather than Cypriot accounts.
There is speculation that this is just the beginning of cash-loaded flights from the UK, and more may follow.
Chancellor George Osborne has already said the UK will compensate any British troops in Cyprus hit by plans to introduce the bank levy.

Banks in Cyprus are remaining closed until Thursday. The Cypriot government are due to vote later today on the exact plan that the will put into place, after the outrage from Cypriots about the initial plan.
Cyprus needs a 10bn euro (£8.7bn; $13bn) bailout to rescue its banks.
Nicholas Papadopoulos, a member of the Cypriot government and Chairman of the Finance and Budget Committee in the House of Representatives, told BBC Radio 5 live's Breakfast that the vote is a 'lose, lose situation' for Cyprus.
A spokesperson for the governing Democratic Rally (Disy) party of President Nicos Anastasiades revealed before the debate has even started that its MPs have decided to abstain, rather than support the package.
With the rest of the parliament expected to vote against it, this is a major display of defiance from Nicosia against the eurozone.
Meanwhile, German stocks fell for a third day before Cypriot lawmakers meet to discuss the multi-billion euro bank-deposit levy needed to get a bailout.

Shame, got married in Cyprus 10years ago wonderful time and people.
 




5mins-from-amex

New member
Sep 1, 2011
1,547
coldean
My parents have lived out there for 8 years now and the way things are going they my need to come back to the U.K, From what they are telling me if you have over 100.000 euros in savings the government want 10% of that money! less that 100.000 its 6.5%!
not sure how things will turn out but its got alot of people over there very worried.
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
evidence if needed that the EU and those in power there literally dont know what they are doing. having guaranteed everyones savings under 100k, they then go and force one of their members to break their own rule. stunning. the handling of the financial crisis is riddled with such contradiction and mutual opposing rules and legislation. yet people would still jump up and down and scream about the bankers, ignoring the politicians involvement in cause and perpetuation of the problems.
 


Superphil

Dismember
Jul 7, 2003
25,401
In a pile of football shirts
People retire to CY from the UK and Scandanavia with a guarantee from the CY government of 5% (or there abouts) tax on pension earnings for life. That compares to 20% in the UK and 35%+ for the Scandinavians. So for Brits with their money out there it is shocking, but at least they're not having as much taken off them as they do in this country by means of taxation every month on their pension earnings.
 




Gangsta

New member
Jul 6, 2003
813
Withdean
Imagine if UK bank account holders were told they'd be losing between 6% and 10% of their money.

Oh but of course they have as artificially low interest rates set by BoE since 2008 have meant 1% to 2% p.a. loss against real inflation.

I can't help but think that maybe a one off tax on assets back in 2008 though extremely painful may in the long run have been a fairer outcome and would have got rid of the deficit much quicker.

By decoupling public spending from GDP from 2001 onwards Blair and Brown built a disaster we will be paying for for years.
 


Superphil

Dismember
Jul 7, 2003
25,401
In a pile of football shirts
Seems like the CY government has voted against the levy anyway. The talk is the banks will now go bust, how will that affect the depositors €10K or €100K, I doubt it will be any better for them. Now it is a problem for the public, whereas previously it wasn't.

As someone said today, countries are happy to send their sons to war to die to try and secure the future of their country, but they're not prepared to invest 6% of their savings to secure the future of their country. Money talks I guess. and I guess the offer of shares in the banks, and shares in the offshore oil and gas businesses which will eventually provide a return weren't good enough either. Now is the time to fear for that nations financial independance.
 






Superphil

Dismember
Jul 7, 2003
25,401
In a pile of football shirts
You may well be right BG, it will change the place though, already far too many Russians there, wonder what effect it will have on the expat community, over 25k Brits there alone.
 


BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
You may well be right BG, it will change the place though, already far too many Russians there, wonder what effect it will have on the expat community, over 25k Brits there alone.

I would agree that they seem to be moving away from European tourists towards Russian but they do not spend the money in the bars restaurants etc that the Europeans do, only it seems in the strip joints.
 


Mellor 3 Ward 4

Well-known member
Jul 27, 2004
9,756
saaf of the water
The Government has just voted against the bailout rules set down by troika in the last hour. They are currently looking into other solutions which don't involve steeling our savings.
Tourism forecasts for this season are up and many plans are in place to help tourists avoid getting ripped off. We've learned from our mistakes from making a quick buck from overcharging and finally the government has realised how important revenue is from this sector so you have nothing to worry about.

Unfortunately, for many Brits, Cyprus has been spoiled by overdevelopment, and high prices.

Shame, because it's a beautiful place, with really friendly people. We spent many happy holidays there, when Protaras was a tiny village, without the drive thru McDonalds etc...
 




beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
Seems like the CY government has voted against the levy anyway. The talk is the banks will now go bust, how will that affect the depositors €10K or €100K, I doubt it will be any better for them. Now it is a problem for the public, whereas previously it wasn't.

well, in theory at least, those with under 100k will be guranteed their cash is safe. the risk is on those with more, but of course if there's too much of those deposits that the bank cant write off and the Cypriot government cant back up (which it cant as it skint), the banks go bust, the <100k depositors get first dibs sharing whatevers left, or the ECB/Bundesbank bail out the whole lot. which was exactly what they wanted to avoid. anyone could see this is where this course of action would lead, people are calling it a black swan but any analysis would have seen a mile away.
 


Mellor 3 Ward 4

Well-known member
Jul 27, 2004
9,756
saaf of the water
I would agree that they seem to be moving away from European tourists towards Russian but they do not spend the money in the bars restaurants etc that the Europeans do, only it seems in the strip joints.

Too many Russian tourists was one of the reasons we stopped going there.

They really have to be the rudest race I have ever met
 


Chicken Runner61

We stand where we want!
May 20, 2007
4,609
well, in theory at least, those with under 100k will be guranteed their cash is safe. the risk is on those with more, but of course if there's too much of those deposits that the bank cant write off and the Cypriot government cant back up (which it cant as it skint), the banks go bust, the <100k depositors get first dibs sharing whatevers left, or the ECB/Bundesbank bail out the whole lot. which was exactly what they wanted to avoid. anyone could see this is where this course of action would lead, people are calling it a black swan but any analysis would have seen a mile away.

This action is what the EU wanted to do with Greece & Spain but didn't dare. They are testing the action on Cyprus to see what would happen and peoples reaction to it.

There is going to be a run on the banks when they reopen, many russians are going to take their money out whatever happens now.

If the government want to take your savings they will, it could happen here. They will rifle bank deposit boxes and steal assets if it suits them
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
If the government want to take your savings they will, it could happen here. They will rifle bank deposit boxes and steal assets if it suits them

of course, but in doing so trash the economy so its pointless (well, unless going for the full socialist revolution, but that requires a bit of popular support). there will be a run on the cypriot banks, and the irony is those with the most will simply do so electronically while the poor Lucas will be queuing up. not sure this is quite what they wanted in Greece and Spain, its what they've spent 4 years trying to avoid. depends on how "they" are, some have long advocated bankruptcy and recovery that way.
 




Superphil

Dismember
Jul 7, 2003
25,401
In a pile of football shirts
Unfortunately, for many Brits, Cyprus has been spoiled by overdevelopment, and high prices.

Shame, because it's a beautiful place, with really friendly people. We spent many happy holidays there, when Protaras was a tiny village, without the drive thru McDonalds etc...

I lived there when Protaris was a tiny spot too! These are some pics my dad took when he was stationed out there and we lived there for 6 years.

This is Fig Tree bay, Protaras when we used to go there.
4981bdf076f88-450x450x0.jpg 3e632bca4aebd-450x450x0.jpg

And this is Ayia Napa, the only hotel in Ayia Napa in 1975!
3e635baaa5e98-450x450x0.jpg 3e634884e9d8e-450x450x0.jpg


Too many Russian tourists was one of the reasons we stopped going there.

They really have to be the rudest race I have ever met

They are quite horrible, they tend to stick to the tourist spots with their strip clubs etc, my brother lives just outside Larnaca, and thankfully is not really suffering too bad form them, although the local CY Mafia now likes to big itself up more than it used to.
 


Chicken Runner61

We stand where we want!
May 20, 2007
4,609
of course, but in doing so trash the economy so its pointless (well, unless going for the full socialist revolution, but that requires a bit of popular support). there will be a run on the cypriot banks, and the irony is those with the most will simply do so electronically while the poor Lucas will be queuing up. not sure this is quite what they wanted in Greece and Spain, its what they've spent 4 years trying to avoid. depends on how "they" are, some have long advocated bankruptcy and recovery that way.

Whilst I mostly agree with you, I've been shocked several times in the last 5 years at how inept and economically stupid our EU and UK financial leaders have been. Osbourne has managed to make Brown & Darling look good. Just taking the UK outlook and seeing how Osbourne has / will doubled our borrowing and now is under fire from US economists who think he's stuffed up (no shit sherlock!) and that are coming out the woodwork to slag him off now is enough to make you yhink that none of them have a clue what to do
 



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