60,000 BRITISH SAVERS FORCED TO BAIL OUT CYPRUS BANKS – Up to 60,000 British savers are to lose thousands of pounds each after European finance chiefs ordered an unprecedented raid on personal bank accounts.
Expats and UK troops based in Cyprus will have their savings decimated as part of a painful bid to bail out the bankrupt island. Britons have about £1.7 billion of deposits in Cyprus and could lose up to £170 million. Full Story – Daily Mail
In an attempt to bail out the Cypriot banking system the Government has agreed with other European Finance chiefs that the only sensible way to rescue the Cypriot banking system is to impose a 10% levy tax on all savers with immediate effect.
The move has caused outbreaks of violence and fierce criticism of the Government’s or the Bank’s inability to control its finances that that this tax on savers accounts is little more than open theft.
Currently restrictions are in place to stop people from clearing out their accounts or even moving their money out of the country, after a deal was struck with Eurozone Finance Ministers, in which the citizens are now directly responsible for the failings of the Government and its Bankers.
Some 60,000 British expats are said to be affected by the move and many are left wondering how the Government can implement such a move. It is little wonder that most British expats feel deeply betrayed considering none of them were responsible for the economic situation and indeed it is their money that helps keep the economy afloat.
The so-called ‘deal’ that was struck by the Cypriot Government and Eurozone Finance Ministers will mean that any saver with €100,000 or more will be liable for a 10% levy on their savings, while savers with less than this amount will be subjected to a 6.75% levy.
It is estimated that this levy, or theft as most are calling it, will raise approximately €5.8 billion which will then be added to a further €10 billion that Brussels (or more frankly the Taxpayers) is to provide.
While the Cypriot Government has stated this is a necessary measure in order to stave off an economic meltdown of the country, many British expats view this as merely a form of outright theft to prop up an incompetent government and its banking system.
This move, by the Cypriot Government and Brussels, is a clear and unequivocal message to savers across the EU; “If we can do it in Cyprus, we can do it in any EU member state.” The fear is that savers across Europe could begin to panic and start moving their funds into other countries outside the EU where it is safe from what appears to be an uncontrollable force that is able to openly steal from the public in order to finance their own failings.
While Brussels and the Cypriot Government try to ensure savers that this is a ‘one-off’ measure to stave off a meltdown, many people fear that if this type of invasive measure is used once there is not stopping it from happening again; and not just in Cyprus.
“We should all be extremely worried about this. It shows that ordinary Europeans are being fleeced by the Continent’s elite in order to rescue foolish banks. Why would you risk putting your money in Greek, Spanish or Portuguese banks after this?” Tory MP Douglas Carswell
Reports are coming in from British expats who are preparing to leave Cyprus in the wake of what they consider and outrageous abuse of power. Some officials are voicing their concerns regarding a mass exodus that could well do more damage to the economy in the near future as money will inevitably flow out of the country as people leave. This also has a detrimental effect on those considering retiring in Cyprus as they will either change destinations completely or heavily restrict the amount of money they hold in Cypriot bank accounts.
The Cypriot Government has said that it intends to compensate savers by offering shares in the bank, however for many people this is simply unacceptable, especially considering the failing of the banks back in the UK and even after a bail-out by the taxpayer they continue to report vast loses resulting in share prices that are not accruing value.
One of the largest groups of British savers affected in Cyprus is the Armed Forces Personnel, who have no way out. Many of them have saved money from the little they receive in government salaries and the consensus appears to be that our troops savings have been hijacked by the Cypriot Government.
There is little doubt that these measures will have far reaching consequence, not just for the Cypriot Government but for all citizens living in the Eurozone. Once again we can see how sweeping arbitrary changes can be implemented by Brussels without any concern for those citizens living in the Eurozone.
Come Monday morning, when the banks open, there are concerns that people may start moving their savings out of the Eurozone in order to protect it from incompetent Eurocrats whose continuous failings fall directly at the feet of the public who in turn are expected to bail out banks and entire countries simply because they cannot control their spending.