Anyone Up For Investing In Cyprus' "investment Solidarity Fund"

[jake-the-peg]

Seems that Cyprus' alternative scheme involves nationalising semi-private pensions and a special investment fund

http://www.bbc.co.uk/news/world-europe-21875246

Is this viable? How much a return would you need to be promised to buy into this fund?

[LazyGun]

I might buy a beach from them, if they are selling any...

[Sqad]

Well, if a loss would compromise my lifestyle....then not one € would i invest.

However....if i was so fortunate that 100,000€s would not go amiss should i lose it, then a return of 15%/annum would do me.

[DangerUXD]

yeah really looks like an attractive proposition doesn't it!

How much return? could be a squillion%, I don't see how any "promise" could be sustained.

[jake-the-peg]

Best shot would be to try to tie it to some sort of gas futures but I think they need the money a bit faster than something like that could be put together.

Nationalising people's pension funds is a bit 'Robert Maxwell'

I suspect a lot of people will wish they'd gone for the bank levy by the time they come to retire!

[DangerUXD]

surely they can just sell themselves into 100years of slavery to their oligarchs!

[pdq1]

By putting money into a failed economy seems fruitless. Any money pumped into their economy is like pouring money into a black hole. The EU realise they are not saveable else there wouldn't be a deadline of next Monday for them to come up with a solution. So if investors in Cyprus are not willing to support the economy the banks will have to close and all their investments will be lost. Their only hope is for Russian investment.

[ludwig]

// Nationalising people's pension funds is a bit 'Robert Maxwell' //

Definately. It sounds like they've decided to make a for grab those instead of peoples bank accounts because people won't be able to queue up at cash machines to withdraw them.

[DTCwordfan]

If I got a large percentage of their gas fields, then yes I would. And that is what the Russians are after......I saw a figure of them being worth up to $400 bln.......

[FredPuli43]

As my old man used to say of properties I liked "If it's such a good deal, why haven't the pros snapped it up long before you saw it?" If the pros with their big money are after whatever deal is being offered , I might tag along, always bearing in mind that they can afford to take a punt, their position might be different from mine, and they are skilled at minimising losses. Whatever it is, it won't be "for widows and orphans",that's certain.

[DTCwordfan]

interesting reading here.....

http://www.reuters.com/article/2013/03/21/turkey-cyprus-gas-idUSL6N0CD7AI20130321

[youngmafbog]

Personally I would not touch it with a barge pole.

As for the pensions, Jake has said it all. Perhaps the Cyprus government will jump into the sea and 'disappear'.

[jake-the-peg]

Yes that is interesting

Not quite sure what legal challenge the Turks are thinking of - I suspect they're just panicking that if the Cypriots were to manage to sell the Russians gas futures on the field their chances of getting hold of some of it will go down the pan.

Still looks like the Russians have pulled out this morning

Cyprus looks like it's running out of options

It's rather burnt its bridges with the EU offer by inflaming the population so it can't go crawling back to that deal

I can't see the EU sweetening the offer

The go it alone pension grab and 'fire sale' option seems to invovle a similar savings grab for large investors and I'm not convinced it could be done in time or even if the numbers add up.

I have to say my moneys on a Euro exit and massive depreceiation.

That's not going to please all those Russians who've been laundering their money in Cyprus

Few Cyprus politicians may be looking for new identities in the near future!

[Gromit]

I suspect an eleventh hour deal will be done. Don't think the EU would want a member state to crash out of the EZ and EU and collapse. It would be bad advertising. Or maybe it will, becuase it is so small and act as a warning to the PIIGS to keep in line.

The Cypriots will split some banks to take out the toxic element then merge the good bits into a smaller, leaner banking sector.

The EU will yeild a little and lower savers will not be hit by the banking levy. Just the big ones (dirty Russian money, so that's alright).

[emmie]

the robber barons have been at it again, i expect that their least worst option is leave the Euro, not much of an option, but you can't be dipping your fingers in people's bank account, those who have done nothing wrong, except keep their measly 10 euro savings in them

[Gromit]

My prediction this morning seems to have been fulfilled...

// The Cypriots will split some banks to take out the toxic element then merge the good bits into a smaller, leaner banking sector.

The EU will yeild a little and lower savers will not be hit by the banking levy. Just the big ones (dirty Russian money, so that's alright). //

[DTCwordfan]

Why don't they agree to sell off fifteen per cent of their gas (not even the liquids) and give them some comfort barrier to what is needed to keep them afloat - they could take a pledge to offer within the month or six weeks to allow preparation of papers and effectively get a European underwrite to bridge them. This is one major difference that they have over the Greeks, a minimum of a tcf of gas and then the hydrocarbon liquids to add to their reserves.

[Gromit]

The gas may not be theirs.

Turkey has an equal if not better claim. To extract and move the gas will involve pipeline through Turkey. The Russians may prefer to deal with Turkey in the first place. The current finds of gas are relatively small and good size fields are unproven. And would take 10 years to realise, when we are expecting a glut of gas on the market due to shale gas. So the orofits may not be great.

[DTCwordfan]

they can actually bridge across to Italy or Greece, that was being looked at in terms of connecting Libyan gas into southern Europe a few years ago....1 tcf is not a bad sized field - the issue is not if it is Cypriot (falling within their waters off Israel) but whether it is Turkish or Greek Cyprus - that is where the negotiation is. You can still sell the assets now and collect, leaving the emphasis on Gazprom or whoever to develop the farming. Est value currently $40bln so 15% would make a lot of sense....

[Mick-Talbot]

we are expecting a glut of gas on the market due to shale gas. So the orofits may not be great.



are we?...... http://www.independent.co.uk/news/uk/home-news/britain-faces-the-prospect-of-gas-rationing-for-the-first-time-8544975.html