Wasn't quite sure whether it was worth creating a new thread for this, or shoe-horning it into one of the other "we're all fucked" type threads, but anyhoo . . .
Cyprus needed a bailout. The amount of money it needed was more than its GDP.
So, they came up with a deal that saw them get just enough cash, but decided that depositors to the banks would have to take a hit. Anyone with >€100K gets stung for 9.9% of their savings, anyone with <€100K still gets stung for 6.75%.
It's madness, it's like they were purposefully trying to create a bank run (although, they did stem that by shutting the doors to the banks). This will no doubt cause some edginess in some of the other Eurozone countries as the people there start to wonder "what if they come along and decide to take my money".
Might see some runs on the banks in the likes of Spain, Italy etc
Cyprus needed a bailout. The amount of money it needed was more than its GDP.
So, they came up with a deal that saw them get just enough cash, but decided that depositors to the banks would have to take a hit. Anyone with >€100K gets stung for 9.9% of their savings, anyone with <€100K still gets stung for 6.75%.
It's madness, it's like they were purposefully trying to create a bank run (although, they did stem that by shutting the doors to the banks). This will no doubt cause some edginess in some of the other Eurozone countries as the people there start to wonder "what if they come along and decide to take my money".
Might see some runs on the banks in the likes of Spain, Italy etc
