Jun 18

–  The Cyprus Bail-In Blows Up: President Urges Complete Bailout Overhaul (Full Letter) (ZeroHedge, June 18, 2013):

Cyprus’ President Nicos Anastasiades has realized (as we warned), too late it seems for the thousands of domestic and foreign depositors who were sacrificed at the alter of monetary union, that the TROIKA’s terms are “too onerous.” Anastasiades has asked EU lenders to unwind the complex restructuring and partial merger of its two largest banks leaving EU officials “puzzled”, according to a letter the FT has uncovered, as “essentially, he is asking for a complete reversal of the program.” The EU officials claim that the failure to prepare for the bailout’s impact was partially the fault of Mr Anastasiades’ government, which voted down a first agreed rescue before succumbing to a similar deal nine days later.

The FT goes on to note that although the letter does not request it explicitly, Mr Anastasiades is in effect asking for further eurozone loans on top of the existing EUR10bn sovereign bailout – something specifically ruled out by a German-led group of countries at the time. The return of beggars-can-be-choosers we presume – or just token gestures to recover some populist support as the enemy of my enemy is my friend.

As we noted here (and on the chart below), it seemed pretty obvious where this was going to end – obvious that is to everyone except Europe’s victory-claiming politicians.

It seems the ongoing flood of capital (despite controls) and collapse of the economy that we discussed here is occurring at ever increasing pace – and demanding even more gold be sucked out of their vaults…

“Unless Cyprus implements some controls that truly work, at this pace its entire banking system will be completely deposit-free in under one year. And it will need to sell much more than all its gold to continue keeping the Troika happy and in compliance with all the future (because there will be many more) bailouts.”

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Mar 31

Cyprus President’s Family Transferred Tens Of Millions To London Days Before Deposit Haircuts (ZeroHedge, March 31, 2013):

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.

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Mar 17

From the article:

“The cornerstone of confidence in the banking system is the integrity of deposits.”
– Finance minister Michael Sarris

Trust us!

Aaaaand it’s gone …

BREAKING NEWS: Cyprus Haircut ‘Bailout’ Is Directly STEALING Money From Depositors, Turns Into Saver ‘Panic’, Frozen Assets, Bank Runs, Broken ATMs

Cyprus ‘Haircut’: Germany And IMF Initially Demanded Stunning 40% Of Total Deposits!!!

You can’t make this stuff up!!!


UPDATE 2-Cyprus Finance Minister says bank deposits will be protected (Reuters, March 6, 2013):

* Cyprus says bank deposits sacrosanct

* Lenders start new contacts to craft bailout deal

* Government wary on central banker’s deposit levy idea

NICOSIA, March 6 (Reuters) – Cyprus insisted on Wednesday that people holding money in its banks – many of them Russian and British – must not take a hit in efforts to repair the island’s shattered finances.

Attempts by Cyprus to secure aid have been complicated by concerns about how the island could afford to pay back a debt burden which could potentially reach 17 billion euros ($22 billion) – almost the size of its economy, one of the euro zone’s smallest.

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