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  • Deposits over €100K at the Bank of Cyprus will be taxed at 62.5%, sources tell Reuters. The figure is far greater than officials originally indicated. Customers will get 37.5% of their deposits over the €100K threshold in bank shares while the remainder of their cash "may never be paid back."  [View news story]
    Seriously? A) Germany needs the spendthrift nations to buy its products & B) panic in the Euro benefits Germany since it keeps its exports cheap. Suggest you rethink your hypothesis.

    On a global perspective the US and the Germans are engaged in an odd tango where neither wants to be seen to be devaluing their currency (strong dollar policy vs Euro dream) yet are finding ways to do that. Right now Germany is winning.
    Apr 8 02:04 AM | Likes Like |Link to Comment
  • Malta: Not Another Weak Link, Not A Tax Haven [View article]
    The comments here are hilarious. You are talking about a housing bubble in what is effectively the second most heavily populated area of the globe second only to Hong Kong. I would also mention that walking away from a residential mortgage here (which is what triggered the subprime crisis) is unheard of in country with a population of 400,000 with effectively two local retail banks (HSBC & BoV). The option simply does not exist. This makes the residential loan book historically rock solid a fact that was conveniently missed by the original article. Property did experience a minor correction over 2008-2011 but, unfortunately for first time buyers and dollar bulls is back on the rise.

    Talk about national debt is also highly disingenous since the state's major debtor is its own people through government stocks and needs to be seen in the context of GDP & GDP growth. Also relevant to note that in the midst of EU doom and gloom Malta is one of the few EU states to experience continued GDP growth and one of the lowest rates of unemployment - which again reinforces the solidity of the real estate loanbook.

    I will let the bank reply about its derivative positions but bear in mind that Maltese local banks have traditonally always run a ridiculously cautious book a fact attested by the world bank ratings.
    Apr 8 01:57 AM | 1 Like Like |Link to Comment
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