Why were Cyprus bank accounts taxed and not have austerity measures done instead?

Discussion in 'Economics' started by Newmoney24, Mar 23, 2013.

  1. Why didn't Cyprus just do austerity measures like Greece?
    -Did they have no austerity measures negotiate?

    I feel like the ECB demanding 6-10% deposits from savings is suicide -- As now trust is lost across the eurozone and we could expect deposits to leave banks rapidly- Especially in the likes of Greece and Spain.
  2. dealmaker


    Because the Germans did not feel like subsidizing the Russian Oligarchs and Russian Mobsters. Cyprus is an offshore banking heaven i.e. they don't inquire as to the origin of your money and should they accidentally stumble on an information they look the other way and since people of Cyprus are also Greek there may be Greek fatigue too...
  3. ECB only demanded money, it wasn't that much, 6 or 7 billion, it was Cypress who refused to raise taxes and instead came up with the bright idea of just confiscating depositers money in the bank.

    They are doing their best to blame it on the ECB, and apparently it is working.
  4. Humpy


    Is that you Splitt ?
    Still can't spell Cyprus properly. Cypress is the tree.
  5. Humpy


    I don't understand why noone looks into where the Cypriot money went. Was it embezzled or loaned out to people who can't repay it or what ? Why should others like taxpayers make up the short fall and pay for the bank's mistakes ?

    Put the bank's directors in jail until they cough up !!
  6. For the same reason we're unwilling to do spending cuts in the US.... no political will.
  7. But there is an austerity package too. after the tax.
  8. they doubled down on Greek Bonds! You can't make this stuff up if you tried.
  9. Humpy


    An alternative explanation is that it is a E6 billion heist of the century and all legal.
    The Soros's of this world are laughing all the way to the ( you've guessed ) bank !! While the sheep bleat ineffectually baaaaaaaaar baar !!
  10. Cypress is the American spelling

    gives it a little more color
    #10     Mar 23, 2013