Cyprus Says F*ck You Eu/imf

[Gromit]

Now Looking to the Russians for help.

Great place for a Russian military base.

Has the EU under estimated Cyprus, and the Russian hand underpinning its banks?

[emmie]

they didn't say feck you, however they have said no to the bailout, let's see the repercussions... whilst we are there i read that the RAF have been sent out with a shed load of money for our service personnel in case it really went belly up.

[buildersmate]

I think you're right Gromit - it's part of a calculated and planned strategy by the Cypriot Government to extract a solution for their country.

One aspect that hasn't come out (that I've read anywhere) is that Cyprus has proven offshore gas deposits with a planned start for volume extraction by about 2018. So any 'loan' now form EU or ANOther should be more than capable of being paid off soon after.

[emmie]

http://www.bbc.co.uk/news/world-europe-21842966

[BayBoy1]

em 10 ,Now that the Cyprus has voted no ,will that shed load of euros be coming back to my bank account here in the UK

[ichkeria]

There's a lot of dirty Russian money in Cyprus. Not surprised they want to try and protect it :-) A tax on that if it could be isolated would be no bad thing

[emmie]

the money was for service personnel to tide them over... those who's bank accounts had been dipped, or were about to be...
grasscarp is out there currently and he said the situation isn't good.

[Gromit]

So, if your parliament votes against a EU/IMF bailout, what happens next?

The EU/IMF were not pepared to offer yhe same terms as they ooffered to PIGS because it was deemed, if Cyprus failed it wouldn't really matter - they were yoo small to help.

So now forlan B. surely they had a plan B, didn't they???

[Orderlimit]

Market talk Cypriot government have a Plan B and a Plan C - unconfirmed

[Orderlimit]

Still no major reactions on the EZ currency markets, Euro/US Dollar just broke 3 month lows

[argorstran]

A couple of points - what are the implications for certain UK football clubs if certain oligarchs have their Cypriot tax-havens "tithed" ?
Also , if the EU is successful in this latest act of banksterism who believes that they will not apply it elsewhere when after QE 2 , QE 3 , etc... the only access to real money will be to "tithe" the savers ?
Well done to the Cypriot parliament for saying "No" . I wonder if our parliament would show the same guts ?

[New Judge]

Of course this is only the Cypriots' first vote. After a small "concession" or two they will be asked to vote again. And again....And again....

[ichkeria]

...or lack of guts.
Whoever thought the MPS were going to pass that one ...
Depends which way you look at it.

Of course as someone pointed out the other day leaving your money in a bank - or indeed anywhere these days - and you'll lose it anyway.

[Peter Pedant]

if it were a Russian ploy

wouldnt they have gallantly stepped forward and underwritten what is in fact their own funds ?

I wold have thought it was more likely that they relished the chance of getting the Germans to send in more money

When BCCI went t==s up, I dont recollect H M G getting arsey over it
they basically said investing in foreign banks is a risky business.
which indeed we know is the case

[Gromit]

// if it were a Russian ploy, wouldnt they have gallantly stepped forward and underwritten what is in fact their own funds ? //

They still might. By waiting until the eleventh hour to present a package to save Cyprus they can extract gas exploration rights, possible naval bases there and basically show southern Europe that there is an alternative to the Merkel tyranny. The Russians could sweep up Greece fairly soon after, as it is worthless Greek bonds which the Russian depisitors money has been converted to.

[youngmafbog]

There are other options and it is likely the EU will try to accommodate. If Cyrus leaves the Euro (and with Russian intervention if it happens that would be likely) then the flood gates could be opened and the EuroZone will not want that.

Could we see China seeing an opportunity with larger countries? they do have the money and are known for shrewd projects abroad.

The problem the Cypriot government have is the possible run on the Banks on Thursday.

It will also be interesting to see what happens to deposits in PIGS countries. If current thinking from Frau Merkle is taxing savers you may see some panicking there too.

[ichkeria]

Cyprus might be in a mess but they aren't that desperate :-)

[jake-the-peg]

Hmmm

I wonder if some people in the EU might like to see Cyprus crash out of the Euro as a visual demonstration to Greece of what would happen if they failed to stick to the terms of their agreement.

Small enough to fail?

As for Cyprus gas deposits this article says they've not actually been proven and the potential wrangle with Turkey over them could be a nightmare

http://www.guardian.co.uk/world/2013/mar/18/doubts-cyprus-gas-bonanza

I'm sure the Cypriots are talking them up for strategic reasons but I wouldn't be betting the farm on them right now

[Gromit]

Latest from Reuters

http://www.reuters.com/article/2013/03/20/us-cyprus-parliament-idUSBRE92G03I20130320

[ichkeria]

Cyprus is suspected of colluding in a huge money laundering operation with Russia. Allegedly much of the investment in Russia from Cyprus is actually a laundered version of many of the bank deposits.
The thing is, the EU should really address this issue separately and not penalise ordinary Cypriots.

[New Judge]

Quite so.

The issue of "funny" Rusky money is smoke and mirrors. The root cause of the Cyprus problem (which I have explained and with which Gromit has already disagreed in an earlier question) is their membership of the euro and in particular the exchange rate used when the Cyprus Pound was abandoned. The Cyprus pound was overvalued upon conversion and Cypriots got too many euros for their Pounds. That rate was unsuitable for their economy, unsustainable but irreversible. What is happening now is the Cypriots (and others with investments there) are being asked to return the extra euros they received.

Until and unless the euro is either abandoned entirely or reformed with a much reduced membership these problems will persist and crises such as this will recur all over the continent. People who suggest these problems arte a thing of the past are deluded.