General Chat

money under the mattress.

Cyprus savers have to surrender 10% of their savings to help with an international bail out.

So those who have saved are penalised and those who haven't are not.

it's better than Australia's scheme to seize ALL money from bank accounts that have been inactive for three years


http://www.news.com.au/money/banking/cash-grab-inactive-bank-accounts-to-be-seized/story-e6frfmcr-1226585867131

Susan I find it totally shocking - I think those with under 100 grand euros in the bank pay 6.75 per cent but any figure is wrong
A classic case of the innocent being penalised to prop up the failing European market
Ask any half decent economist and this is doomed. It has a financial knock an effect for the rest of us apart from the immoral side of it.
People in Cyprus will try anything they can to withdraw their money so that they have hard cash in their hand, under their mattresses.
This is absolute lunacy and will lead to panics from the common people and further falling markets

It applies to the 27,000 ex pats there and also may apply to our Armed Forces personnel who draw some of their pay in euros.

Yes Chris spot on - I think it applies to anyone who has deposited money

They say it could happen anywhere in the future.

Some of the older Cypriots will have lost their homes and most of their belongings in the 1974 war.
Now this................


Gwyn

So much for the much famed European human rights then!
What about the right not to be robbed!
Nothing but legitimised theft, now the banks will empty and surprise, surprise, a banking crises, caused by financial "experts" that can't see past the quick fix. :-P


Mayfield

What is the point of putting your money into banks now? Interest rates are a joke and now this line has been crossed where the government can seize your money.......slippery slope

Hardly a way of building back the trust in banks.

Think i will sleep very well tonight on my new home made mattress ;-)

Roy :-D

The British Government will 'compensate Military Personnel' in Cyprus if they are affected. (BBC News 24 just now)

It is a terrible situation when Governments get into trouble and plunder private bank accounts like this.

It does create the level playing field for older people where someone who had made some money and worked hard finishes up the same as someone who has never worked and saved for anything.

A maiden aunt of mine sold her very successful little business at age of 70 (in about 1955) and refused to put proceeds in bank. Apparently, she tucked all her cash in her mattress and round her house and slept on her money. She refused OAPension saying it was charity and she didn't need it. Money began to run out after 15 years (aged 85) and she spent last 6 years of her life happily on benefits (because somebody managed to persuade her she was entitled).

How many dotty old aunts will this financial crisis encourage? Everyone will bank with the Bank of Mattress :-)

Draw it all out, and buy gold :-D

Gold is more malleable than silver, DET. But paper notes are much more comfortable to sleep on.

I am going to take all my cash out tomorrow and spend it at Farm Foods with a £10 voucher. For £100 (my worldly wealth as at 17 Mar 2013) I will be able to buy £110 of frozen foods :-D :-D

Only those over 100,00 euro saved will have to pay almost 10%. Below 100,000 euro it's 6.75%. It is a tax to be paid and is offset by giving bank shares in exchange so hopefully some money will be refunded at a later date.

To put all in perspective .

We pay £60 in council tax per year (UK our house there was £2000 per year) and personal taxation starts £16,866 and tax rate is 20%. In 8 years we have saved far more than what will be taken in this 1 off tax.

We do not have a problem with this.

The tax is retrospective to time agree in Brussels, so money will be removed at the start of banking on Tuesday. No-one will be able to draw all their money out as the tax amount has already been blocked to stop it's withdrawal. Fait accompli.

Thanks for the perspective Pat.

Despite your acceptance, it must have been a blow to the indigenous population who may have low paying jobs to start with. Even 6.75% must be a b*mmer.

Lets hope that the Share certificates are transferable on death as it could be a number of years before they are redeemable.

NB - was there any warning that this might happen?

armed forces will be recompensed if they lose money - heard that on the news this morning

seems to me this is just robbery - no other word for it - perhaps the Cypriot governement should ask some of the monasteries to help out - have any of you been to the Kykkos monastery in the Troodos mountains? It's fairly dripping in gold everywhere you look

It does seem to be robbery. And the Cypriot people very much seemed to agree with that when interviewed. Very upset they can do nothing about things till Tuesday morning.

We would not stand for it in Britain. There would be riots and a really serious run on the banks. Grey power can be quite potent - as Jack Jones would have confirmed. :-D