First time in international history — A haircut. Haircut deposits in Cyprus

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First time in international history — A haircut. Haircut deposits in Cyprus

All banks closed from 17 until 22 March 2013. Never in history didn’t saw that. The Banks closed for five days.

How all started…

The President of Cyprus Nicos Anastasiadis on 15 March 2013 at eurogroup …

Early morning of 15 of March the eurogroup , Christine Langard, Giorg Asmaousen , Oli Ren, Minister of Cyprus Finance Μichael Sarris, and the President of Cyprus after marathon talks in Brussels took a shocking decision:

The decision….

‘’Tiered off levy on deposits in Cypriot banks namely, 9.9% levy on deposits of more than 100,000 euros in Cypriot banks and 6.7% for deposits below the 100,000 euro. ‘’

This means a haircut everyone depositors to help rescue the Cypriot economy as features Merkel said.

The agreement further provided that interest on deposits will be taxed at 20 to 25%, while the corporate tax in Cyprus will increase from 10% to 12.5%.

The official announcement of the Eurogroup on the agreement with Cyprus in Greek language

Speaking after the Eurogroup, the head of Jeroen Dijsselbloem noted that the tax on deposits to be applied to Cyprus, under the Treaty of debt 10 billion. Euro is not intended to punish the country.’’ We do not punish Cyprus,” he said, describing the tax as “a very fair measure of burden sharing.”

For his part, member of the Governing Council of the ECB Jorg Asmousen, described the taxation of savings as “appropriate” and “specially treated” measure the state of the Cyprus economy.

The morning of 16 March 2013… The announcement of eurogroup Decision from the Cypriot media and How react Cypriot citizens..

Turmoil in Cyprus after the Eurogroup…

Too much frightened depositors rushed from early morning to cooperative Institutions and banks operating and Saturday to withdraw money, since they never knew when and how many money will mow .

They found, however, that the system was not working.

Queues formed at atm banks and citizens angered by the political leadership.

The Director General of Central Cooperative Bank Erotokritos Chlorakiotis said electronic customer service system is “frozen”. Therefore, he said, have closed for today Cooperative Institutions.

The Cypriot citizens intimidated and scared. Cypriot television channels panic prevailed. Τhe same in Greece, in greek channels that broadcast the shocking news.

The shocking news were broadcast in other countries ..

The storm of protest was about to erupt in the next days …

The next day, 17 of March, was Sunday, the ATM machines

let depositors get only 200 Euro and the Monday was a public holiday.. Clear Monday.

Indicative of indignation was … Visit depositor with excavator on branch SEA Kyperounda in Limassol noon Saturday. The applicant stated outraged, believing that “deceived by the assurances that the relevant deposits are secured.”

19 of March 2013

The 56 members of the parliament had to decided for the future of all Cyprus society. The stock market this day remained closed.

How the THRILER convention finished…

The 36 members of Cyprus parliament voted ‘’No ‘’and 19 members, from the same party of the president voted ‘’abstention’’ for the bill ‘fees’ deposits decided the Eurogroup.

In the same time about one thousand Cypriot, and a number of few russian people chanted outside from Cyprus Parliament a lot of slogans. Other people cried. But Everyone were very angry and anxious for what members of Cyprus parliament will decide.

Moreover others shouting that there should be a referendum. After 15 days from the presidential election as President of the Republic, the president, lied in society and accepted the decision for a haircut.

Cyprus society in front of a lot of policemans, shouted the most loudly slogan : WE ARE PEOPLE WE ARE NOT NUMBERS.

A lot of videos with statements of Cypriot people are in the you tube.

We saw there different media from different countries. Especially from Russia.

Τhe Cypriot channels, they didn’t came all, stayed there for eight (!) minutes only.

The Cypriot media are politicized especially the TV channels, are not independent.
According to the Code of Ethics of Media , the media must be independent.

Fortunately, most members of the Cyprus Parliament voted a heroic ΝΟ. The Cyprus Parliament Vote against the common resolution of the eurogroup and president of Cyprus.

The President Nikos Anastasiadis in 24 March 2013, in Brussels to continue negotiations with Eurogroup ..

For the conclusion of the loan agreement for the rescue of the Cyprus economy.

March 25, the finance ministers of the European Union and the International Monetary Fund reached a new plan under which clipped by 40% deposits in Cypriot banks exceeding 100.000 €, and merged banks of Cyprus and Laiki Βank.

They decided the closure of Cyprus Laiki Bank.

Bank of Cyprus will be recapitalised by clipping uninsured deposits over € 100,000. The performance is such that would allow return of 9% upon completion of the program. All depositors under 100,000 euros will be fully insured in accordance with the provisions of the EU .The 10 billion will not be used to recapitalize the two banks.

Reuters wrote about what decided between the eurogroup and president of Cyprus, Nicos Anastasiades in 24March 2013…

‘’Cyprus will close down one of its two biggest banks and restructure the second one as part of an international bailout, Cyprus and international lenders agreed on Tuesday.’’

Bank depositors of up to 100,000 euros will not suffer any losses but bigger depositors will contribute to recapitalizing the bank that is to be restructured — Bank of Cyprus.

Shareholders, bondholders and those who held deposits above 100,000 euros in Laiki bank, which will be closed down, will cover the cost of the resolution, euro zone ministers and the International Monetary Fund decided.

Depositors with more than 100,000 euros in the Bank of Cyprus will see their money above that threshold frozen until it is clear how much of it will be needed to recapitalize the bank so that it can reach a capital ratio of 9 percent.

»The Laiki bank will be split into a good and bad bank and the good part will be folded into the Bank of Cyprus. It will take 9 billion euros of European Central Bank liquidity with it to the Bank of Cyprus.»

After mowing deposits, to telling the truth, robbing deposits of ordinary citizens of Cyprus, small businesses ( stores,shops) closed, other trying to survive. The big business, as many of these are not affected ,influenced by the haircut.

The memorandum unfortunately passed by the Cypriot parliament on April 30, 2013 every day brings enormous impact on citizens first and then to the island at all. The MoU was signed to save it said the Cyprus government. These are also, only lies of the media tv.

Unemployment in Cyprus is growing every day. 46.000 unemployment people.

Young people are leaving forever from Cyprus for a better future in other countries.

Memorandum and haircut are a treachery, a plan, a huge crime.

The Cypriot financial system was destroyed with the haircut.

Never in history the banks closed for five days.

Haircut means robbery. Steal. Stole the deposits from the pocket of the citizens.

October 2014

Greek professor at Philologiue and

Master at Journalist and Communication


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