http://www.guardian.co.uk/world/2013/mar/24/cyprus-bank-levy-leave-euro
Cyprus, which earlier rejected a proposed bank levy on deposits to raise the money required, may now be forced to accept that same bank levy as options are quickly running out. The country's financial sector is already in chaos with withdrawal limits being imposed as people are desperate to get their money out of the banks.
A lot of people with money is Cyprus, particularly Russians, stand to lose a lot of money with the imposition of a levy that could range from 5% to 25%. While it initially appeared that this option would not have to be embraced - there seems to be little choice now. The Eurozone has offered Cyprus an ultimatum - to raise the required sum or leave the Eurozone. And they have few options other than the harsh levy. This situation also serves to stress that the Eurozone is far from entirely stable and is not yet out of troubled waters.
Cyprus, which earlier rejected a proposed bank levy on deposits to raise the money required, may now be forced to accept that same bank levy as options are quickly running out. The country's financial sector is already in chaos with withdrawal limits being imposed as people are desperate to get their money out of the banks.
A lot of people with money is Cyprus, particularly Russians, stand to lose a lot of money with the imposition of a levy that could range from 5% to 25%. While it initially appeared that this option would not have to be embraced - there seems to be little choice now. The Eurozone has offered Cyprus an ultimatum - to raise the required sum or leave the Eurozone. And they have few options other than the harsh levy. This situation also serves to stress that the Eurozone is far from entirely stable and is not yet out of troubled waters.
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