BREAKING ALERT! CHAOS IN CYPRUS: “Thousands” Are Withdrawing Their Money; ALERT IN THE SOUTHERN EUROPEAN COUNTRIES
March 16th, 2013
Cyprus state broadcaster CyBC reported that German Finance Minister Wolfgang Schaeuble had proposed Cypriots lose 40 percent of their bank accounts although they were not responsible for the economic debacle that was caused when a previous Greek government, in a frantic bid to reduce its debt, imposed 74 percent losses on investors and bondholder. Sarris said the IMF agreed with Germany.
16 MARCH 2013
People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund.
The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the region’s debt crisis.
But in a major departure from established policies, the package also includes a one-off levy on the money held in bank accounts in Cyprus. Analysts have warned that making depositors take a hit threatens to undermine investors’ confidence in other weaker eurozone economies and might possibly lead to bank runs.