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A senior official says Cyprus has reached an agreement with the Troika to impose a 20% tax on...

A senior official says Cyprus has reached an agreement with the Troika to impose a 20% tax on accounts over €100K at the Bank of Cyprus and a 4% levy on similar accounts at other domestic banks. The same source told Reuters the country would not nationalize pension funds. 
Comments (46)
  • Nicosia official says Cyprus not in reach of deal with troika, blames IMF | http://bit.ly/Y6QUSp
    23 Mar 2013, 05:13 PM Reply Like
  • Love it! Sending a message to the wealthy that you can't hoard your money in overseas accounts, get it in the market or pay the taxes!
    23 Mar 2013, 05:17 PM Reply Like
  • And what about the Cypriot citizens and businesses that account for ~70% of those deposits?
    23 Mar 2013, 05:19 PM Reply Like
  • Russo,

     

    Ever hear of " Due Process?"

     

    Be careful what you wish for.

     

    Anybody could be next.

     

    That is how the process of desensitizing works.
    24 Mar 2013, 10:53 AM Reply Like
  • Russian black money is taking some hit but not bad. They made money.
    23 Mar 2013, 05:47 PM Reply Like
  • Watch the people RUN to withdraw their money when the banks do ever open again..

     

    Wait until they try this in Italy...This is outright THEFT!!

     

    Nothing is now untouchable to try...SCARY !!
    23 Mar 2013, 06:14 PM Reply Like
  • will people trust bank ever now that broad-light theft is going on?
    23 Mar 2013, 06:21 PM Reply Like
  • Is the deadline Monday March 25, 2013 Cyprus local time 6.00 P.M. (US EDT Monday 10:00 A.M.)?

     

    Oh well, never mind; they (Troika) will extend it anyway anyhow.

     

    Tuesday March 26 banks open in Cyrus?

     

    Oh well, never mind, they (Cyprus) will extend it anyway anyhow.

     

    Stay tuned!
    23 Mar 2013, 06:42 PM Reply Like
  • Putin will execute half the Politicians in Cyprus in one sneeze!
    23 Mar 2013, 06:59 PM Reply Like
  • Thus begins the run on the banks - no way this ends well.

     

    Stupid Socialists - at yet within every generation of Americans, there's a naive bunch that still thinks this socialist-garbage works.
    23 Mar 2013, 07:23 PM Reply Like
  • How is it socialism to sacrifice many small depositors to insure bond holding Elites don't see even a penny of loss?
    Sounds more like Corporate and Bankster Fascism to me.
    24 Mar 2013, 10:02 AM Reply Like
  • what do you call it when GS , MS, CITI, AIG got bailed out again....i forget... oh yeah CAPITALISM....
    24 Mar 2013, 10:04 AM Reply Like
  • Cyprus is a beta test. Once they see how much they can get...it will spread
    23 Mar 2013, 07:42 PM Reply Like
  • Seems like a reasonable solution for an isolated problem. Not very likely that it would spread. I feel bad for those who worked hard for that money, but if you have that much and your country has so little it kindof seems inevitable that things will balance out...
    23 Mar 2013, 07:50 PM Reply Like
  • 100,000 euros is not a lot of money unless it is all you have and it took you a lifetime to save.THERE WILL BE BLOOD!!
    23 Mar 2013, 09:25 PM Reply Like
  • There will be some angry depositors on Tuesday. I would not be surprised if the Cypus banks limit the amount the depositors can withdrawal. Bank tellers are in for a very tough day at work. Police will be busy trying to keep the peace. It will be UGLY.
    23 Mar 2013, 11:02 PM Reply Like
  • @zbnw. "I feel bad for those who worked hard for that money."

     

    You got a funny way of showing it, I hope you never feel sorry for me.
    24 Mar 2013, 12:14 AM Reply Like
  • ZBNW

     

    You aren't serious are you? Pull this in the USA and you have a revolt, looting, murders all over the place..A reasonable solution huh?

     

    WOW...Is all i could put in print..

     

    Once you do this is WILL spread!! The bell has been rung and you never can unring a bell. Anyone thinks this is a one time deal needs a reality check!! Pandoras box has been opened..

     

    All of Europe is asking WHO IS NEXT ?

     

    I find it funny the Bondholders skate away free. Wonder who they are . Maybe the EU?
    23 Mar 2013, 08:07 PM Reply Like
  • Americans are mostly a fearful lot, will never happen.
    24 Mar 2013, 10:04 AM Reply Like
  • RB

     

    Funny , i remember when WE were not going to send our boys to Viet Nam as well. NEVER say NEVER!!
    24 Mar 2013, 12:17 PM Reply Like
  • This should demonstrate to any fence sitters that Big Government will always resort to the theft of private property when expediency trumps the rule of law. If anyone thinks it can't happen in the U.S. just ask yourself why wages don't keep up with Fed induced inflation and why GM bond holders took it on the chin. Your property rights end when government decrees that it has a first lien on everything you own. Think property tax for starters.
    A government that is big enough to give you everything you need is big enough to take everything you have.
    - Ronald Reagan
    23 Mar 2013, 08:15 PM Reply Like
  • Geo,

     

    It won't be long before that wind blows over the Atlantic towards here: - when the regime is desperate for cash, they will grab your Social Security, Medicare, 401(k), Roth IRA, Internet sales tax, and tag on a Value-Added Consumption Tax (VAT).

     

    Nothing is off the table, and nothing is not creeping up in their minds. Look at that $60K IRS video 'Star Trek' Captain Kirk!

     

    Big Government is already here, for a long while, in that you just haven't noticed it, yet!
    23 Mar 2013, 08:41 PM Reply Like
  • In addition to GM bondholders, don't forget our friends at MF Global that got Corzined to the tune of $1.5 billion of "sequestered" cash stolen out from under them.
    23 Mar 2013, 09:37 PM Reply Like
  • TK, Do you think they will take all our earnings, too? And make us into slaves?
    23 Mar 2013, 10:10 PM Reply Like
  • MI, it is not what I think that counts; it is the facts, evidence, scholarly historian opinions, trends, and history of the United States that speak for itself.

     

    Let me quote two anonymous sources elsewhere from SA on this topic in response to your question, below:

     

    “…Our undoing is a poisonous liberal ideology that has challenged the constitution and displaced the tenets of conservative values and democratic capitalism. This warped ideology, based upon progressive collectivism, has allowed political parties to weaken our economy, indulge in fiscal irresponsibility, expand entitlements, install sweeping social agendas and reduce our military strength. We simply cannot afford what has been committed to…”

     

    “…America was unique in the history of the world. In the 1960s America became decoupled from its heritage, its Constitution, its great middle class values and traditions and its sense of manifest destiny.

     

    This decoupling has now become a chasm and the America of history and the USA of the past 50 years have less and less in common: a shared geography but morally, intellectually, culturally two alien and incompatible nations. America has now been occupied by the US Regime. It has fallen from within…”

     

    I repeat: "Fallen from within".
    23 Mar 2013, 10:55 PM Reply Like
  • You mean, America is progressing from the America of the 19th century? We should all go back to the 19th century or we will all be slaves?
    23 Mar 2013, 11:43 PM Reply Like
  • MI, those are your words, they are not my words.

     

    Please re-read my post carefully. I do suppose you are literate being 'Ivy-League' educated. (Don't know and don't care if it was low Ivy or high Ivy though).

     

    Please do not put your words into my mouth.

     

    Thank you.
    24 Mar 2013, 12:20 AM Reply Like
  • You do not prefer the 19th century? So you just want USA to go back to the period between 1900-1950? We had two World Wars and a Great Depression then. That must have been the golden age to emulate, no?
    24 Mar 2013, 12:56 AM Reply Like
  • What happened in the 1960's that decoupled America from its heritage, Constitution, middle class values/traditions and sense of manifest destiny?
    24 Mar 2013, 01:06 AM Reply Like
  • Civil Rights legislation?
    24 Mar 2013, 01:14 AM Reply Like
  • It's not just "liberal" agendas that have us in the spot we are in.

     

    The "conservative" Republicans have gave us two wars that cost us Trillions $. They also blessed us with Medicare Part D, an $80 billion a year unfunded liability. They are just as complicit as Dems in selling their corporate welfare.

     

    Both parties, and the Americans who blindly pick one or the other, gave us the oligarchy we have today.
    24 Mar 2013, 07:28 AM Reply Like
  • No. It was The Great Society programs which entrenched The New Deal and brought the word "entitlements" into the lexicon. The Civil Rights Act and its progeny would not have been necessary had the federal government enforced the The Bill of Rights and The Thirteenth and Fourteenth Amendments. Sadly, Progressives believe it is the redistribution of wealth and the gradual elimination of property rights which will bring about social justice when all it has brought about is more parasites on the fisc.If your goal is economic equality then side with the Progressives and wait in line at the government office for your health care and ration cards.
    24 Mar 2013, 09:02 AM Reply Like
  • Or side with the current brand of Republicans and finance wars, corporate welfare, and tax loopholes for the 0.1% with massive government deficits.

     

    There aren't any "good guys" left to vote for. Don't let Fox News or MSNBC tell you otherwise.
    25 Mar 2013, 09:06 AM Reply Like
  • "I have been asked, with some frequency, why the bondholders have not been tagged in the Cyprus fiasco. That answer is simple. Most of Cyprus's bonds are pledged as collateral at the ECB or in the Target2 financing program. Then one may also ask why the bonds of the two large Cypriot banks are not being hit. The answer is the same; most are held as collateral at the ECB or Target2. In both cases, remember uncounted liabilities, the government of Cyprus has guaranteed the debt. Consequently if the two Cyprus banks default it is of small matter as the sovereign has guaranteed the debt. However if the country defaults and leaves the European Union then it will matter and matter significantly as the tiny country of Cyprus would wipe out the entire equity capital of the European Central Bank. While it is not a matter of public record it is estimated that Cyprus has guaranteed about $11.6 billion of collateral at the ECB." (John Davis)
    23 Mar 2013, 08:33 PM Reply Like
  • The EU can't cave in here because if they do, they open the door up for renegotiation of past and future bailout deals. The EU can't let that happen, so they have to play hard ball in public. Given the stakes, there has to be a lot going on in private.

     

    My guess is the big depositors are going to take a hit. Whether they do or they don't, capital controls are going to need to be put in place.

     

    When that happens its going to be like an open wound in the EU... they are going to bleed... there will be pain... there is no way to escape the damage now... some people are going to be forced to fall on their swords... no telling how this will escalate at this point.
    23 Mar 2013, 09:01 PM Reply Like
  • I don't understand why everyone is so shocked / negative that bank holders over 100k Euros will take a hit.

     

    We have the FDIC - and if your little bank goes belly up you may also lose money over 250k per account. It's been this way for years.

     

    People who have net worths of 10 million are (usually) smart enough to have parked 2 million in each of 5 banks. Specially if you're banking with a tiny local/community bank or a random foreign bank.

     

    It's just common sense. The truth is most of the people with 5 million in an account will be pissed to lose 1 million - but, they probably have assets elsewhere, and hopefully the 1 million that becomes an ownership stake in the bank will be worth at least 500k one day...
    23 Mar 2013, 09:52 PM Reply Like
  • The problem isn't that accounts over 100k will likely lose money - problem is that under consideration is loss of money in accounts under 100k. It shows that when push comes to shove, secured debtors (aka ECB and related entities) take no losses while depositors protected under current eurozone statues take some losses.

     

    I stand by my prediction this crisis will be far more costly for eurozone that giving Cyprus 6 billion euros. This almost certainly assures withdrawal of depositors money from eurozone periphery towards the core and away from the zone. This makes further banking bailouts in eurozone periphery a certainty.
    24 Mar 2013, 12:36 AM Reply Like
  • I can't believe he said that. Balance out? Some of these deposits of 100k+ are peoples life savings. And they had it in there because they thought it was safe. The number one rule about breaking rules is that it just gets easier to do the next time.
    23 Mar 2013, 09:54 PM Reply Like
  • In the US there's been this big blame the rich, tax the rich, etc thing going on...The IMF approved of this, so you know the US has their hands full of this...and it will spread

     

    For the record...I'm an American
    23 Mar 2013, 11:39 PM Reply Like
  • Rich should pay more taxes in the U.S.. Maybe the rates don't go up on income, but get rid of the loopholes that elite take advantage of. Why do you think Romney wouldn't release his income taxes? It's because he rarely pays taxes.....

     

    In the end, it will be middle class Americans who foot the massive bill we have built up.
    24 Mar 2013, 07:36 AM Reply Like
  • I was initially as outraged as everyone else when the confiscation of a portion of the funds of all depositors was first proposed. However, after that proposal was adjusted to include just those with deposits in excess of 100K, and after looking further into the issue, I have far less of a problem with it. Based on information found in a missive by the estimable Jim Cramer (Oh, JC, won't you pray for me....), assuming what he wrote is factual, depositors were receiving an unsustainable 5% for their funds. I'm sorry, but even to the most gullible among us, that should have served as a major red flag. Those banks were rotten to the core, and even naive investors (and investing is exactly what those depositors were doing) bear responsibility for their actions. To limit the haircut to those with deposits greater than 100K seems fair to me. This has nothing to do with socialism, Big Government, or any other bogey man of which you can conceive. It has to do with paying the piper.
    24 Mar 2013, 12:50 AM Reply Like
  • The banks in Cyprus are broke. How do you tax deposits that are really not there? I guess their ultimate goal is to just lower the amount the banks actually owes its depositors (those over 100K) by 20%. They call it a tax but it is really theft.

     

    Look what socialism gets you. If you let these banksters go broke, they will learn their lessons. If you do not, they will do it again.
    24 Mar 2013, 10:49 AM Reply Like
  • I hope that Cyprus tells the Troika (highwaymen) to stick it where the sun doesn't shine. Then print their own money, and develop their nat gas. There will be a lot of money moving around the world this week.The Russians won't be forgetting this soon.The authors of this gem have a knack for snatching defeat from the jaws of victory.

     

    24 Mar 2013, 10:51 AM Reply Like
  • Cyprus result will come positive and market will remain higher.Do not worry.
    24 Mar 2013, 10:51 AM Reply Like
  • Suppose your a Cypriot. lets say you have an average income and you just sold your house last Friday the 15th of march. If this put you over the magic number I bet It also put you over the edge. No matter how you cut it this is out right theft. I'll bet that the noise would be a lot different if the original plan stayed in place. This is a trial balloon. If you continue with the 20% tax it won't be long until the people who live out their lives with the tax man nipping at the heels never able to put more away than a years wage will be the rich. Have you ever worked for some one who makes less money than you?
    24 Mar 2013, 11:08 AM Reply Like
  • The IMF should be disbanded.
    24 Mar 2013, 11:09 AM Reply Like
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