Which part of Cyprus. The Christian part of the Mohammadian part?
"Cyprus" is a country?
When I worked in debit card fraud, half of our cases originated in Cyprus or Malta. People's entire checking accounts drained from an "atm" there.
When I got an online 'payday loan' this past winter, the company was located in Cyprus. Everything went alright, but I make sure the checking account they deposited the money into (so easy!) stays near zero at all times. And I'm fixin to cancel it soon, just to be safe.
They tied too much of their economy to Greece. That was their biggest mistake.Greece's corruption, shitty economy and lack of civil concern has sunk it to new lows.R4 Cyprus is actually run more honestly than most of the other Eurocrisis countries BUT that banking sector has issues. Half of the money deposited in Cyprus is from Russia and Ukraine. The Germans claim that some of that money comes from the Russian and Ukrainian mob. They aren't the only country doing it(Britain, Luxembourg and Malta are guilty of doing the tax haven thing) BUT Cyprus is in trouble financially.
So while Cypriots may have been quite cool and collected during yesterday's bank reopening when the Troika was kind enough to give them access to €300 of their cash per day, one wonders just how cool and collected they will be when the implications of the cash crunch spread through the system, when hundreds of small and medium business are forced to lay everyone off overnight, when paychecks suddenly stop and when not only savings but ongoing cash grinds to a halt.
Because if the locals thought the deposit haircut is the worst of it, just wait until the full brunt of what a -20% depressionary collapse in the economy hits them head on.
One of the prevailing false conventional wisdoms about the Cypriot cash confiscation is that it primarily affected rich, tax-evading individuals of Russian origin. Alas, those same individuals are likely to have been least affected, as subsequent discoveries of capital control breaches by the "richest and best connected" reveal, while increasingly it appears that the uninsured depositors on whose back the nation of Cyprus was bailed out are small and medium corporations, who had been parking cash for net working capital purposes with Cyprus' banks, cash which is now gone forever to feed the creeping insolvent Euro-monster, and which can't be used to fund such day to day business activities as payroll, purchases, and business operations.
Such as this one:
The most of circulating assets on our business Current Account are blocked.
Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years.
I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation.
The business is definitely ruined, all Cypriot workers to be fired.
We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners.
Special thanks to:
- Jeroen Dijsselbloem
- Angela Merkel
- Manuel Barroso
- the rest of officials of "European Commission"