Greater Grand Theft Cyprus…(“Grand Theft World”…There, I Fixed It!)
Saturday, April 13, 2013
Hit ’em again harder is policy. Cyprus is Exhibit A. It’s pound of flesh demanded got greater. “Could it possibly get any worse,” headlined Cyprus Mail?
Weeks after agreeing to Eurocrat terms, six billion more euros are demanded. A leaked European Commission “Assessment of the public debt sustainability of Cyprus” report revealed it.
At issue are “needs for the recapitalization of the banking sector, the redemption of maturing medium and longterm debt, including loans and fiscal needs,” it said.
Another 600 million euros will be raised through higher corporate taxes. Gold reserves sales may raise another 400 million. Eurocrats demand they be sold. Their public debt sustainability report mandates it. Clause 29 states:
Sale of excess gold reserves: The Cypriot authorities have committed to sell the excess amount of gold reserves owned by the Republic. This is estimated to generate one-off revenues to the state of 400 (million euros) via an extraordinary payout of central bank profits.
Privatizations and privately held debt rollovers will raise more cash. How much remains to be seen.
Cypriots are learning the hard way. Eurozone straightjacket rules entrap them. One size fits all doesn’t work. Losing control of monetary and fiscal policy assures disaster. It’s just a matter of time. It’s hitting Cypriots full-force.