Ad Majorem.....Wealth Builders
July 5, 2015
Greeks (61%) vote no to 2nd bail out terms
While the Greeks can only withdraw $60.00 per day from ATM, and banks remained closed the entire week, they voted 61% no to ECB and IMF terms of 2nd bail out. Many can not comprehend what PM Alexis Tsipras and his left wing party are up to.
We do understand that the Greeks no longer want the prolonged hardships they are experiencing. Since the Greek govt failed to pay the $1.5 billion interest payment due at the end of June, effectively their credit is gone. No liquidity to be infused to the banking system. We should be wary when IMF says that failure to come to their terms would mean more hardships.
But what are the results/possibilities?
1. Results, - decline in the Euro stock prices and Eruo vs dollar and yen. Euro is only $1.10 vs the dollar; it can go lower.
While the Greece economy is only 2% of the total European economy the 200 billion possible default, can send ripple effect worldwide. All ready the equity markets are on the decline and there are indications of sell off.
Possibilities:
1. Debt relief for Greece
2. 3rd debt relief
3. Grexit?
4. Collapse of the Euro and possibly the world financial system
Showing posts with label ECB. Show all posts
Showing posts with label ECB. Show all posts
Monday, July 6, 2015
Wednesday, March 27, 2013
Cyprus deal effectively raided the savings of depositors?
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There is a limit on the amount if any that could be withdrawn l00 Euros.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.
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.
Friday, March 22, 2013
Problem in Cyprus: ECB funding to be cut off if Cyprus govt can not present bail out plan
Ad Majorem.....Wealth Builders
From MoneyNews | March 21, 2013
European Central Bank threatened to cut off temporary liquidity to Cyprus bank unless an IMF sponsored bail out is presented. Banks continued to be closed and stock market closed in Cyprus. The deadline for the Cyprus govt would be until Monday.
Earlier, the legislators proposed a compulsory tax on banks to shore up the state sagging finances.
In case of Cyprus collapse of financial system, the deposits that banks sought to protect would be lost; and there would be extreme devaluation and Cyprus would have no recourse except to devalue. Such problem to Cyprus banks occurred because of exposure to Greece banks. Russians have many deposits in Cyprus banks.
What would happen? Would Cyprus govt come out with bail out plan until Monday?
Is the EU situation getting any better?
How would this event affect the PHL, PHL OFW?
From MoneyNews | March 21, 2013
European Central Bank threatened to cut off temporary liquidity to Cyprus bank unless an IMF sponsored bail out is presented. Banks continued to be closed and stock market closed in Cyprus. The deadline for the Cyprus govt would be until Monday.
Earlier, the legislators proposed a compulsory tax on banks to shore up the state sagging finances.
In case of Cyprus collapse of financial system, the deposits that banks sought to protect would be lost; and there would be extreme devaluation and Cyprus would have no recourse except to devalue. Such problem to Cyprus banks occurred because of exposure to Greece banks. Russians have many deposits in Cyprus banks.
What would happen? Would Cyprus govt come out with bail out plan until Monday?
Is the EU situation getting any better?
How would this event affect the PHL, PHL OFW?
ECB: Cyprus Bank Funding to Be Cut Unless Bailout Reached
From Moneynews.com | Fri, Mar 22, 2013 at 12:35 AM
ECB: Cyprus Bank Funding to Be Cut Unless Bailout Reached
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