Cyprus Finance Minister: Uninsured Laiki Depositors Could Face 80% + Haircuts

Cyprus haircutsCyprus’ Finance Minster has now officially confirmed that Laiki depositors with over 100,000 euros in Cypriot banks face at least 80% haircuts, and stated that realistically, very little will be returned.

Now that news has circulated that Russian oligarchs were able to withdrawn billions over the past week when Cypriot banks were closed, we suspect Cypriots are not likely to take this latest news of 80% + haircuts for Laiki customers well.

 

 

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As FoxBusiness reports, and as we reported Sunday night, Cyprus Popular Bank customers face between 80% and total losses on deposits over 100,000 euros:

Cyprus’s finance minister said Tuesday that large deposit holders at Cyprus Popular Bank PCL (CPB.CP), the island’s second biggest lender, could face losses of as much as 80% on their deposits as the government moves to wind down its operations.

Speaking in a television interview with state broadcaster RIC, Michalis Sarris indicated that it could also take years before those depositors see any of their money returned.

“Realistically, very little will be returned,” Mr. Sarris said.

Asked if, like in other bank closures, it could take six to seven years before depositors get back there money, he said: “maybe yes. And the amount [returned], could be 20%. Certainly, for depositors above 100,000 euros it could be a very significant blow.”

Why full-fledged bank runs have not already began in Spain, Italy, Portugal, and Greece in light of DieselBOOM’s statements this week that Cyprus is the new template for the Eurozone is beyond us. 

.1% interest on deposits in return for risk of an 80% + haircut does not seem like a great return to us.

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Comments

  1. The best is yet to come….silver at 300

  2. I’d be long suicides by multiple shots to the back of the head with the wrong hand.
    Oh and silverman, you have one too many zeroes on that price. lmao.

  3. I give up…siver at 199

  4. A haircut. I wonder how many public relation firms it took to come up with that innocent sounding phrase?

  5. Well it is now threatening to turn green for the day, that is something at least. I’ve always said… we know who makes money in volatile markets… the bastards behind the curtain. Meanwhile weak hands get shaken out and many sit on the sidelines waiting for the seas to settle.
     
     

  6. The 40% haircut figure that is being reported in the media is an average.  Local depositors over 100,000 get an 80% haircut.  Bond holders might get 10%.  Not right.  Not fair.  Not just.   But, then again it’s the Troika running the show.  Fair and right and just are not in their dictionary.

  7. ‘Haircut’ could be interpreted as a scalping in this scenario.

  8. This sucking black hole of theft will NOT STOP at deposits.  The depth of deposit exits by Russians and others will leave their banks completely devoid of capital when, or if, they reopen.  I would not be surprised if all the banks fail, even those that get the 10 billion euro tranche.  Pension plans will be on the table, probably this time next week, or sooner.  The plans were going to be expropriated if the ECB bargain was not put in place

    • And of course the elite scum were allowed to withdraw their money leaving the little guy holding a rapidly emptying bag

  9. Hell Forget the Haircut, Cyprus is the first Nail In The New World Order.

  10. I watched a doco on the Japanese Tsunami of 2011 last night. The one thing that absolutely stunned me was the number of people watching the water rising over levies and casually walking away. Workmen on docks watching but not moving. Families walking away from the rising water but not running their guts out to get away. Then the most tragic part….. watching these people get sucked into the debris and swirling waters, houses lifted off their foundations crashing into other houses and still the people don’t panic!! If a tsunami is chasing you down and water is pouring over the levies you PANIC and run!!!!!!
     
    Isn’t this what we are seeing in Europe?? Why aren’t these people in Spain, Italy, Portugal, Greece taking their money and running away from these banks?? The tsunami of financial collapse is on the way and yet people shrug their shoulders, convinced they either have time to remove their money if it gets worse or that they still trust the banks or TPTB to actually put their interests first!!!
     
    Truly this is the most frustrating thing in the world, in action by people that should be taking action!!!! 

    • Perhaps it is just too late for them, Julie.  They have been lobotomized by their governments to the point that they can no longer think for themselves.  They HAVE to be TOLD to panic before they actually do.  :-(

  11. Goes to show you don’t f*** with those Russians.

  12. 80%!? That is way too exaggerating! That’s like taking out 80,000 euros out of your account if you have 100,000 euros. With that amount, you could have bought 50 ounces of gold at 1600 euros per ounce!

  13. Also with 80,000 euros, you could have bought about 2667 ounces of silver at 30 euros per ounce! These banksters thieves think that 80,000 euros comes like that by magic from us!

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