Daily Archives: March 18, 2013

Banking Panic in Cyprus as accounts raided by European Union and government

Cyprus bank bailout

Germans kill Cyprus offshore banking industry and tourism

German Chancellor Angela Merkel accomplishes what the Nazis could not: ruling Europe, UK

60,000 Britons out millions of pounds thanks to the Germans

by West Side Davie

Who wants to holiday in Cyprus? How about some offshore banking transfers or savings? Thinking of buying a vacation residence?

For Brits, Europeans and just about anybody else in the world the answer to these questions just became a solid “NFW” (that’s slang for “No thank you”) as the Cypriot government moved on Friday to seize up to 9.9% of all bank accounts in the country. Electronic transfers were stopped and the auto-teller machines were emptied within a few hours of the announcement.

“This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. Although the representatives at the bailout press conference tried to present this as a one-off, they were not willing to rule out similar measures elsewhere – not that it would have mattered much as the trust is gone anyway.

If you can do this once, you can do it again. if you can confiscate 10 percent of a bank customer’s money, you can confiscate 25, 50 or even 100 percent. I now believe we will see worse as the panic increases, with politicians desperately trying to keep the EUR alive.

Depositors in other prospective bailout countries must be running scared – is it safe to keep money in an Italian, Spanish or Greek bank any more? I don’t know, must be the answer. Is it prudent to take the risk? You decide.

This is a major, MAJOR game changer and the fallout will be with us for a long time to come. I believe it could be the beginning of the end for the Eurozone as this is an unbelievable blow to the already challenged trust that might be left among investors.”

… Lars Seier Christensen,, CEO Saxo Bank, Denmark on his blog

If you have below 100,000 Euros in a Cyprus bank the government will only seize 6.9%. How nice of them! What’s next to go, holiday home expropriations via a 25% tax? Why not? Once a government starts grabbing private property, that’s really it. We can talk about how much to take and what to take but debating the morality is over – it’s a done deal.

Why is this happening, you might ask? The Germans won’t bail out Cyprus’s banks unless everybody Cyprus takes a hit: much the same as the Barbados Government did with CLICO victims. It’s really all the same, isn’t it?

This is bad business for Barbados too – and for a lot of reasons.

People are going to be nervous and reluctant to spend or travel. All those condo projects on the island are, overnight, looked at in a different way by Brits and Europeans. Everything is unsettled. Throw in the Harlequin Hotels and Resorts scandal and there isn’t much except clouds on the horizon for travel and tourism in Barbados and the greater Caribbean.

Further Reading

Daily Mail: The great EU bank robbery: British taxpayers to bail out victims of outrageous raid on Cyprus accounts

About the cartoon: Someone sent it around in an email with a Greek caption. We’ve inserted the English caption but we haven’t a clue where to give credit. If it’s yours, it’s brilliant, and please give us permission to use it!


Filed under Barbados, Business & Banking, Offshore Investments