Ad Majorem.....Wealth Builders
From Moneynews | March 25, 2013
The deal to raise about 5 bln Euros as Cyprus contribution to raise the 13 bln to rescue Cyprus. The deal effectively shuttered the Laiki bank; deposits below 100,000 Euros will be shifted to the good bank: Bank of Cyprus. Those above 100,000 will be used to recapitalize in a debt to equity conversion of the bank of Cyprus, and the rest to resolve the debt of Laiki bank.
The move will raise 4.2 bln Euros, or nearly 30% of the total deposits. The Russian depositors are furious. The Prime MInister Dmitry Medvedev of Russia criticized the bailout and was quoted as saying what has been" stolen continues to be stolen"
There is a limit on the amount if any that could be withdrawn l00 Euros. Banks remain closed and there is continued anger vs the terms and conditions of the 13 Bln bail out
The first proposal was to impose a levy on all deposits across the board. Although the hit on big depositors is much bigger than planned.
The Cyprus govt was led by Pres.Nicos Anastasiades in dealing with ECB and EU. He earlier threatened to resign if the deal was tougher than it was.
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