Savers forced to bear costs in Cyprus bailout
For the first 100.000 that is in the name of every saver they will freeze 6,75%, for every amount above 9,9% of all savings as a contribution to the rescue plan for Cyprus.
In a radical departure from previous aid packages, euro zone ministers forced Cyprus' savers, almost half of whom are believed to be non-resident Russians, to pay up to 10 percent of their deposits to raise almost 6 billion euros.
Do EU officials have an idea what that may spark on Monday when banks are going to be opened around Europe?
If I would be living in Italy I sure would know that I would clear my accounts in Italy. This may even spark into France where the economy is not picking up in any way, where there are no serious reforms on the way.
It is probably going to give gold a huge boost in the coming weak as long as people have no clear understanding of where their money will be save for a while.
Will we see a run on banks on Monday across Europe?