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Reporter's Notebook: Worried Cypriots scramble for their money
By Shemaine Bushnell

Published March 22, 2013

FoxNews.com


Banks have been closed since word got out that the Cypriot Parliament is considering seizing a percentage of banks deposits. (Photo by Shemaine Bushnell)

The conversations - and expressions - have turned serious in the coffee shops of Nicosia. (Photo by Shemaine Bushnell)

The run on ATMs could foreshadow a run on banks themselves, when they reopen. (Photo by Shemaine Bushnell)
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NICOSIA, Cyprus – And so it begins...what I had been passively worrying about the last week has now hit me hard.

I went to the pharmacy today to buy some milk and medicine for my 3-year-old and the pharmacist informed me that they were no longer taking credit or debit cards. It's cash only, because that's what their suppliers are demanding. The same is true at several gas stations on the island, and I don't doubt that more will soon follow. The new rules come as banks are closed while lawmakers try to find a way to meet the European Union's conditions for a bailout. The scariest plan under consideration would have the government skimming as much as 10 percent off of all bank accounts.

The fact is, Cyprus has prospered for many years. Since I first visited the island in 1995, the economy has steadily grown. Property values doubled and tripled, banks were doling out loans like money grew on trees. Unlike in the U.S., you only needed a good guarantor to back you up. The Cyprus Stock Exchange was on the rise before the bubble burst. Many foreign companies invested in Cyprus due to its healthy financial sector. And many foreigners, a majority of them Russians, had decided to make Cyprus their home, depositing their money into local banks.


When the banks finally reopen in Cyprus, depositors will be withdrawing their money, with or without the levy. The public trust in the financial system has now been eroded.

But in the last year, the decline has been palpable. Cypriots were worried. Loans went into default. Shops were closing one after the other. Makarios Avenue, a major shopping strip in the capital, Nicosia, closed as more than 20 shops had hung "for rent" or "for sale" signs. What once was the top shopping hub for the entire island has now become a ghost town.

Yes, the coffee shops are still full in the afternoons, but the chatter and facial expressions have taken on an increasingly pessimistic tone. Coffee shop talk used to be about the latest trend in fashion, gossip about friends and political opinions. Now it's more about which ATM is still dispensing cash, and when will the banks reopen, or even if business will still be taking credit cards after tomorrow.

As I drove around Nicosia the past week, I was surprised to see security guards next to the ATMs at several banks. It made me a bit nervous. Some branches had lines of people waiting to withdraw money from the machines. Those that did not have a line were obviously out of money.

Until yesterday, I had decided to save what cash I had on hand and use my debit card instead. This would leave me with cash in case I would need it, save me from standing in those long ATM lines and at the same time use up my money in my account in hopes of avoiding the levy. But this won't last long. If and when the banks open, money will have to be withdrawn. And as with many Cypriots with international businesses like mine, money will also have to be transferred to other countries in order to purchase goods for customers in Cyprus.

Many Cypriots pay our bills with automatic, monthly bank deductions. If banks stay closed, bills will not be paid, Internet and cell phone service will be interrupted, and even electricity and water could be shut off. I do not believe it will come to such a desperate situation, but I have made my own preparations, as I'm sure other Cypriots have done.

All in all, the situation is dire. Cyprus has its back against the wall. It makes me wonder what the European Union, the International Monetary Fund and the European Central Bank are thinking. These are supposed to be the intellects of Europe, advised by the best economists in the world. Didn't they understand that threatening to tax the deposits of ordinary folks could prompt a run on banks, both here and in other EU countries? If they can do it to Cyprus, what's to stop them from doing it to Italy, or Spain, or Greece?

When the banks finally reopen in Cyprus, depositors will be withdrawing their money, with or without the levy. The public trust in the financial system has now been eroded. And we will revert to hoarding money in our homes, just like they have done in Greece.

There were high hopes after Cyprus joined the EU in 2004. Cypriots thought, ‘Why not?' The EU would help strengthen our economy, bring us closer to Europe and maybe even help to unite the island once and for all (an issue that has been in the forefront of Cypriot political discussions since the invasion by Turkey in 1974).

But all this has changed. There has been no unification of the island, the tattered economy now needs a bailout, unemployment has risen and some Cypriots are questioning whether it was ever beneficial to join the EU at all.

Since one week ago, when new President Nicos Anastasiades flew to Brussels to discuss the possible $13 billion bailout for Cyprus, Cypriots were hopeful. We had a popular president elected just one week earlier. It was hoped the bailout would inject new life into the economy.

But now, Cypriots are angry. The EU's condition that Cyprus tax bank deposits was, for Cypriots, unreasonable. Of course, we all want to contribute our fair share but deposits are sacred, not only in Cyprus but in the rest of the world.

It is now a waiting game. A decision must be made soon or Cyprus faces bankruptcy and a possible withdrawal from the EU. As with all Cypriots, I hope this crisis resolves and we can start rebuilding Cyprus to the way it once was.

Or I can at least be assured of buying milk and medicine for my child.

Shemaine Bushnell is a freelance journalist who lives in Cyprus.



Read more: Reporter's Notebook: Worried Cypriots scramble for their money | Fox News
 
Fitch ratings agency puts UK on review for sovereign debt downgrade, decision by end of April
Published March 22, 2013

Associated Press

LONDON – Fitch Ratings has placed the United Kingdom's AAA rating on review for a downgrade, citing forecasts indicating that government debt will peak later and at a higher level than previously expected.

The warning comes just days after Britain's Treasury chief unveiled an austere budget despite weakness in the economy that has raised fears of a third recession in just over four years.

Last month, Moody's Investor Service downgraded the U.K.'s credit rating, saying that sluggish economic growth would hinder the government's ability to control rising debt.

Fitch said Friday it was putting the U.K. on "rating watch negative" — indicating a heightened probability of a downgrade in the near term — and that it expects to complete its review of the U.K.'s sovereign debt ratings by the end of April.



Read more: Fitch ratings agency puts UK on review for sovereign debt downgrade, decision by end of April | Fox News
 
Either you are very young or you just haven't a clue.
I have been inside of research exposing the issues of the scum undermining our country for years.
Having been there ... occasionally one comes across bad info or purposed disinformation. (As I have already identified it as such.)

The fact that you haven't the clarity to discern it in the first place and keep blowing smoke simply makes it clearer ... what your full of.

Regardless ... you get the first position of worthless POS that I have found in this great forum.
Not only can't you understand what I have said ... but you also out of sheer ignorance lay ridiculous claims.
People like you are a huge problem in this country - Unable to tell the truth, not appreciating the truth and ridiculing it.
I hope you and the rest of your libtards enjoy the mess you have made of this great country.

and I don't waste time on the indoctrinated:s0112::s0112:
 
PB take no heed of JJ he thrives on being the center of attention even if he has to be a Total Ash Hat to obtain it; that is the sum total of his existance. Think of him as a Michele Moore wannabe, a sad, pathetic human being that is not worth your consideration or distain
 
PB take no heed of JJ he thrives on being the center of attention even if he has to be a Total Ash Hat to obtain it; that is the sum total of his existance. Think of him as a Michele Moore wannabe, a sad, pathetic human being that is not worth your consideration or distain

LOL ... thank-you erudne - I usually look for your posts at morning coffee as they are usually insightful.

... a backside rash or hemorrhoid - e.g. - an irritation or speed bump ... either way ...

Agreed ... finally had to utilize the ignore :cool:
 
BTW
I made a cash withdraw today as Monday is Cyprus's Bow Down To The EU Day (or else) so I figured I'd draw down what little I have as it is somewhat possible there could be a cascade event through the entirely fictional investment/banking world; I can always put it back in!
 
I don't get around here very much, only to buy stuff. Too many lame posters like the gresham boys that think they know it all. My mistake is posting common sense to people who have to be programed what to think. I won't be back. LOL
 
--------------------------------------------------------------------------------

Ukip urges Brits to withdraw their money from Spanish banks
Nigel Farage has urged British expatriates in Spain to pull their money out of the country's banks.

The UK Independence Party leader said that the European Union had "crossed a line" by trying to extract funds from savers under the terms of the abandoned Cypriot bail-out.
Mr Farage said: "Even I didn't think that they would stoop to actually stealing money from people's bank accounts.
"There is going to be a big flight of money and that flight of money won't just be from Cyprus, it will be from the other eurozone countries, too. There are 750,000 British people who own properties, or who live, many of them in retirement, down in Spain.

<broken link removed>
__________________
 
A day after former Cypriot President Vassilou was found to be among many elite Cypriot (politicians and businessmen) who had loans written-off by the major (now insolvent) banks; it appears the rot is far fouler than expected. In a somewhat stunning (or purely coincidental) revelation, ENETEnglish reports that Cypriot newspaper Haravgi claims that current President Nicos Anastasiades' family businesses transferred 'dozens of millions' from their Laiki Bank accounts to London just a week before the devastating depositor haircuts were unleashed upon his people. Of course, the denials are loud and Anastasiades has demanded an investigation into the claims; we are sure the government-selected 'independent' committee will be as thorough as the Libor anti-trust investigators. As a reminder, as we noted yesterday, here are Cyprus' gun control laws.
Via EnetEnglish,
A company owned by in-laws of Cypriot President Nicos Anastasiades withdrew dozens of millions from Laiki Bank on March 12 and 13, according to an article published in Cypriot newspaper Haravgi.

The newspaper, which is affiliated to the communist-rooted AKEL party, reports that three days before the Eurogroup meeting the company took five promissory notes worth &#8364;21m from Laiki Bank and transferred the money to London.

Responding to the allegations, Anastasiades said: "The attempt to defame companies or people linked to my family... is nothing but an attempt to distract people from the liability of those who led the country to a state of bankruptcy."

The president added that no one, including himself, will be exempt from the ongoing investigations looking into responsibilities over the near collapse of the economy.

Anastasiades added that when the investigative committee convenes on Tuesday, he will request that its members look into this particular case with the same attentiveness as all other cases.

The company in question has firmly denied the reports.

Last Friday a list of companies and politicians that had loans written off by banks at the heart of Cyprus' bailout crisis was published in Greece and was subsequently handed to the Cypriot parliament's ethics committee. The list includes the names of politicians from Cyprus' biggest parties (excluding the socialist EDEK and the Greens).
 
01:50 NSFW and absolutely 100% correct about how the financial elite, via government politicians/paid-for puppets WILL be coming after your bank account savings and retirement money. The looming economic collapse that they engineered is not enough for them.

They like to pull the wings off flies, and guess what, you are the fly.

 
Last edited by a moderator:
Civil servants and pensions in cash-strapped Cyprus could go unpaid this month because of a shortfall of at least 75 million euros ($97 million) in government coffers, an official warned on Monday.
Finance Minister Haris Georgiades, meanwhile, cautioned that leaving the eurozone would take Cyprus back "centuries" and insisted the island has no "Plan B" for reneging on a 10-billion-euro ($13-billion) bailout.

Accountant General Rea Georgiou told parliament's finance committee that the government was trying to avoid a payment default for the month of April.
"The cash deficit for April is 160 million euros. The 85 million in reserve is not enough and we need a similar amount to avoid a default," Georgiou said, as the island awaits the first tranche of a eurozone bailout due in May.
&#65279;Read More...
 

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