Cyprus would seek EU bailout money 'if necessary



So, why not let these bankis fail? There is a deposit guarantee in place up to 100K Euros for smaller depositors, presumably underwritten by the ECB??
The remaining depositors get burned with the bondholders and shareholders but the balance sheets are not totally devoid of assets and the losses appear to be in the order of 50% for a winddown. Hey, that’s what you get for investing in Greek bonds and lending to greek banks, surely banks have to be allowed to fail, there is notihng systemic in these unless I am missing something completely?


Well, there is a ‘systemic’ aspect - potential to aggravate and inflame another world economic bloc power… as in very rich, presumably well politically connected russians would be burned big time if it was allowed to fail. Putin has already been making big noises.


it would be worth it to see the end of Chelsea F.C. :smiley:


I’m open to correction but I’m pretty sure the €100k Euro guarantee in each EU country is underwritten by the sovereign only, with no call on the ECB.



the EU directed that the members have this in place; presumably making it the same means there wouldn’t be “guarantee arbitrage”
wiki: … EU_country


Had a chat with a friend, the weirdness of this makes one think, **was the aim devaluation of the Euro by another means? **

#208 … -dreadful/


“the most in 14th months?”
well EURUSD is back above Last week’s lows


I would not claim to be a currency expert but the context of the much touted currency wars had me



Reuters: ECB prepared to let Cyprus go, protect others … vrit=56943


I think we may be having our Admiral Byng moment…pour encourager les autres…


Hi Slasher forgive my stupidity and I may be reading this incorrectly but if we take the blue line as domestic deposits its coming in at around € 50bn, if you then divide that figure by the populaton of the island around 842k I get a figure of close to €600k am I wrong ?? If my maths are correct € 600k for every man woman and child in Cyrus !!! I was there a few times and whilst there are a lot of wealthty people certainly the general population aint in that category.
Apologies if my maths are way off


I think Cyrus is more like Chandler Bing. He and they dont have “Friends” anymore


When I was wee, I used to dream of a week of bank holidays. Lucky Cypriots…
Monday bank holiday!
Tuesday bank holiday!
Wednesday bank holiday!
Thursday bank holiday!
Friday bank holiday!
Monday bank holiday!


I think it’s € 60k, but this would include domestic business deposits too.


Haven’t see details TBH bt I would also look at domestic corporates, plus naturalised Ruskies

I suspect you’re missing a decimal point


Yep your right about €60k thats why I never got into the Dept of Finance


They welcome such accuracy with open arms!