Hola muy buenas, este es mi primer post en Inbestia.com y lo hago
en formato inglés. Antes de todo agradecerle que gaste su tiempo leyéndome y
espero que le guste.
First of all we are going to talk about
what Cyprus
is.
Cyprus is an island in eastern of Mediterranean sea.
Nearly a century it was a British colony, and it became independent in 1960. Population
is basicly populated by Turkish and Greeks. It joined to eurozone in January
2008, just before the crisis blew up.
What happened?
There wasn´t any problem in Nicosia, the problem came from other country, it´s called, as you should know, Greece.
Cypriot banks had enourmous amounts of Greek debt. The value of it had a
nosedive, it provoked the destroy of balance Cypriot banks. Almost 3,5 billion
were lost. They lost 76% of valuation.
Besides, this nation had a fast growth in
credit, banks made many loans, as in Spain. There was a market boom.
Their assets were equivalent to 835% of Gross Domestic Product and loans to Greece
borrowers were 160% of GDP. As I said when Greece
was hit, Cyprus
was the following one.
Bailout as a solution.
Deposits of 100.000€ or less will be
affected by 6,75% levy and higher deposits will have a tax of 9.9%. That gets
5,8 € billion. Half of the bailout. Here it´s where our dear Russians appear,
the most of higher deposits are from foreighner as them. Russian funds were
searching off shore, with low taxes and the found the darkness. All this
measures are with one aim, to get 10€ billion from IMF. Cyprus
goverment is threatened by IMF to cut off funds of Cypriots Banks.
Cyprus
bailout broke all the rules.
Common saver are punished by a levy of
6,75% on saving up to 100.000€ and bondholders arent being touched. First
country where low savers are going to be punished by a levy. The eurozone rules
have been broken (though I mean fucked). This bailout was voted by Parliament
and it was postponed. Then EU and IMP started to use their weapons, threatens. Finally
there was a deal. If you are being drowned by someone you will be their slave. They
get you.
What has been agreed?
-Restructuring of its banking sector.
-Tax rises and
privatisations.
-Second
important bank will be close down. Deposit with more than 100.000€ goes to
"bad bank" and below that to Bank of Cyprus. Which is the biggest
bank.
-Bank of Cyprus
restructured. Deposits with more than 100.000€ are frozen.
-It is expected
to lose 30% of the balance.
As a
conclusion, I wouldnt like EU to pay Russian Gazprom bill next winter. Europe
is the most importer of natural gas from Russia. Will
we pay finally the bailout?
