Cyprus-Forum.com

[Demonax]

The only real solution to protect yourselves as a nation is to do two things:
1) move deposits to priority claims on the failed banks.
2) tax deposits beyond €100K before the banks go bust. Tax enough so that the state has enough money to pay out the €100K deposit guarantee.

This will ensure the state does not go bankrupt and ensure depositors get back maximum back in time.

This seems to be what is happening at the moment. Although there's not been any word on introducing a levy on deposits >100k, I'd be surprised if it stays that way.

[Viewpoint]

So has Liaki gone bust? dont you GCs have a deposit fund to pay out to depositors under 100.000 euro?

[cyprusgrump]

The EU has never had any interest in Cyprus other than to expand its base of taxpayers...

Anybody that thinks/thought membership of the EU would in some way protect Cyprus from Turkey is completely mad...

The EU is ONLY interested in one thing - your cash...

As soon as the cash runs out you are finished....

Am I wrong or haven't the EU poured millions into Cyprus over the last years to develop the infrastructure to enable it to become part of the EU? Seems to me that the one taking all is Cyprus. Most places where there is development on going there is a sign saying with EU money. So tell me what have the EU had in return? And as for expanding its base of taxpayers that's a laugh considering Cyprus itself cannot get Cypriots to admit that some of them earn more than 19,500 euros. (anything earned over that amount is taxed)

I'm not sure you are wrong, but you are certainly confused...

Remember that the EU (like all governments) has no money of its own. the only money it has is that which it has taken from other taxpayers.

So, the EU may have splashed some money around in Cyprus but that has been taken from elsewhere. Remember that the money they spend is not voted for by anybody and those that spend it are totally unaccountable to you.

That is why we end up with brand new airports in Spain that have never had an aeroplane land at them and new high speed railways in Turkey funded by the poor EU taxpayer.

Remember also, that when I say 'tax' I do not just mean income tax. The EU imposes many extra taxes on us including VAT, mandatory fuel duties and numerous 'green taxes'.

[danny1234]

:lol: typical state of denial

does anyone really expect germany to change their policy?
monday morning the headlines will read
"cyprus is out of eu and the eurozone"

Why not accept the original proposal?

The only really sensible thing to do in the circumstances.

There's is nothing sensible about confiscating peoples deposits. Are bank deposits for the governments to take? These are what is called "private property". Seizing private property is called expropriation, nationalization, robbery if committed by other entities.

In my opinion you accomplish nothing by taxing deposits, you only discourage people to trust banks long-term, and trigger massive run on the banks, plus confidence in the eurozone is shaken to the bone. If you were to tax deposits, 5-10% is laughable and only shows how badly the politicians understand the game, you should tax 100% and seize everything while you're at it.

We have a saying in Iceland, "You can't see black on black". If you're going to rob people, rob them fully and get it over with.

There is nothing sensible about putting your money in a bank that is promising the earth but can't deliver, if it looks like shit and smells like shit it is shit. Protect up to 100.000 euros and bugger the rest, or become another state of Russia.

[Kikapu]

err - according to that table in fact it has TAKEN more than it gives
some 250 million

Wasn't this 250+ million Euros allocated by the EU to the TCs to be used in the north only?

[sven]

So has Liaki gone bust? dont you GCs have a deposit fund to pay out to depositors under 100.000 euro?

It is a question I have been asking, but everyone ignores. The Link below is the Central Bank of Cyprus(CBoC) Deposit protection Scheme (DPS) page.

http://www.centralbank.gov.cy/nqcontent ... 58&lang=en

You will note in the first paragraph it is this :-

a Deposit Protection Fund has also been established which operates as a separate legal entity administered by a Management Committee.

So there you have it, yes there is a Deposit Protection Fund and a separate legal entity exists for the administering thereof. So where are these funds and who has them.

But there is more to this, in 2008 The responsibility of POLICY for the CBoC changed, the PERSON now legally responsible is the president of the European Central Bank (ECB).
http://www.centralbank.gov.cy/nqcontent.cfm?a_id=8089
https://en.wikipedia.org/wiki/Central_Bank_of_Cyprus

The Governor of the Central Bank of Cyprus is the highest official in the Central Bank of Cyprus. The position was established in 1963 when the Central Bank of Cyprus was established.

The Governor has the responsibility of chairing the meetings of the Central Bank's Governing Council and Board of Directors. He or she had the responsibility for setting the Central Bank's policy in relation to the Cypriot economy, but this responsibility passed to the President of the European Central Bank on 1 January 2008, which is also the date that Cyprus changed over to the Euro from the Cypriot pound. The Governor is a member of the Governing Board of the European Central Bank.

So in essence, it is the ECB that is responsible for the policy that got Cyprus where it is today.
WHERE ARE THE FUNDS FROM THE DEPOSIT PROTECTION SCHEME

[appel]

There are no funds in the deposit insurance scheme. Don't you get it? The deposit guarantee is a swindle, a bluff.

This is why I have said the deposit guarantees are the BIGGEST issue facing Cyprus, because the sovereign is liable for the minimum guarantee (supposedly).

Same thing came up regarding foreign depositors in Iceland in the so called Icesave dispute. Iceland was effectively blackmailed into accepting paying out €5 billion to foreign depositors because of this so called deposit guarantee. The president vetoed it, put it to a general vote and the people rejected it (twice!). It ended up going to the EEA court of justice, where they effectively threw out the case telling the EU that Iceland was fully within its rights, there was no state guarantee on deposits.

However, the EU has changed the deposit guarantee rules since then, so I am not sure if the same applies for Cyprus.

[Viewpoint]

Wheres the EU Kikapoo???? your great EU principles appear to causing a great number of the problems for the GCs.

A little knowledge can be very dangerous with you!

What does the EU Principles needed for a settlement in Cyprus has anything to do with the financial crises of the Euro, ECB and the IMF?

You have been caught with your trousers down, it has everything to do the principles because it is the principles of this worthless Union which has brought you to collapse the principles you peddle are worthless in times of crisis..all you are doing is back peddling to save any morsle of credibility you may of had left.

[sven]

There are no funds in the deposit insurance scheme. Don't you get it? The deposit guarantee is a swindle, a bluff.

This is why I have said the deposit guarantees are the BIGGEST issue facing Cyprus, because the sovereign is liable for the minimum guarantee (supposedly).

Same thing came up regarding foreign depositors in Iceland in the so called Icesave dispute. Iceland was effectively blackmailed into accepting paying out €5 billion to foreign depositors because of this so called deposit guarantee. The president vetoed it, put it to a general vote and the people rejected it (twice!). It ended up going to the EEA court of justice, where they effectively threw out the case telling the EU that Iceland was fully within its rights, there was no state guarantee on deposits.

However, the EU has changed the deposit guarantee rules since then, so I am not sure if the same applies for Cyprus.

When you say it is a bluff, do you mean fraud, it clearly states on the CBoC site "a Deposit Protection Fund has also been established", that is either true or false. It goes on to say "which operates as a separate legal entity administered by a Management Committee." , so as a separate legal entity, it either exists or it does not, if it does not, then it is fraud.
off topic.
I am pleased that Iceland as a people were able to see through the bull sh1t and realise they were not liable for the mistakes of others, I read somewhere that the president of one of your banks was lending to himself or his companies and associates prior to the collapse, is this true and is he in jail.
I have also read that John Perkins has advised in the recovery of Iceland. I wish you and Iceland well.

[appel]

There are no funds in the deposit insurance scheme. Don't you get it? The deposit guarantee is a swindle, a bluff.

This is why I have said the deposit guarantees are the BIGGEST issue facing Cyprus, because the sovereign is liable for the minimum guarantee (supposedly).

Same thing came up regarding foreign depositors in Iceland in the so called Icesave dispute. Iceland was effectively blackmailed into accepting paying out €5 billion to foreign depositors because of this so called deposit guarantee. The president vetoed it, put it to a general vote and the people rejected it (twice!). It ended up going to the EEA court of justice, where they effectively threw out the case telling the EU that Iceland was fully within its rights, there was no state guarantee on deposits.

However, the EU has changed the deposit guarantee rules since then, so I am not sure if the same applies for Cyprus.

When you say it is a bluff, do you mean fraud, it clearly states on the CBoC site "a Deposit Protection Fund has also been established", that is either true or false. It goes on to say "which operates as a separate legal entity administered by a Management Committee." , so as a separate legal entity, it either exists or it does not, if it does not, then it is fraud.
off topic.
I am pleased that Iceland as a people were able to see through the bull sh1t and realise they were not liable for the mistakes of others, I read somewhere that the president of one of your banks was lending to himself or his companies and associates prior to the collapse, is this true and is he in jail.
I have also read that John Perkins has advised in the recovery of Iceland. I wish you and Iceland well.

You need to realize that the deposit guarantee scheme was not designed to handle an entire banking system of a nation collapsing, as it holds only a fraction of deposits in its account. It was designed for bigger countries, like Germany, where there are dozens and dozens of banks. Originally the deposit guarantee scheme (FDIC) was created in the banking crisis of the 1930's in America. So while little and medium banks collapse, there is no issue, but when all the banks go under there is not enough cash in the fund. Then the question is, is the state liable to back up the fund?

In Cyprus there are 3 major banks (just like in Iceland), and if only 1 goes under the deposit guarantee is broke. €100K euro guarantee is a bluff. Iceland was (almost) liable for €20K guarantee and that totaled in €5-6 billion, effectively bankrupting us. For Cyprus this amount might be €20-30 billion.