Sunday, March 17, 2013

Cyprus banks tax for depositors

Deposits in banks are frozen to be lost in Cyprus.

Cyprus government has decided to levy on deposits in Cyprus banks. The rate of levy is up to 9.9% for depositors who leave more than 100,000 euros in Cyprus bank.

Cyprus parliament meets on painful EU bailout deal

According to an evaluation of fiscal status in Cyprus performed in Jan 2013, 17 billion euros will be needed to save Cyprus from financial crisis. European Union (EU) rejected to pay all of this money. So Cyprus accepted to raise tax for depositors to gain partial financial support from the EU.

For depositors it is no other than a calamity. The New York Times also criticizes this policy.

Cyprus Goes After the Little Guy: The New York Times

However, it is not only citizens in Cyprus but also foreign investors to be attacked. Legislation about finance in Cyprus was so loose, that many entrepreneurs established FX industries in Cyprus to gather a large amount of money.

Financial traders tend to move their money from time to time for safer and effective condition on their investment. They may only have misunderstood about the risk of Cyprus. Such a terrible game!

Fortunately it is unlike that the crisis of Cyprus would influence other EU countries, even if the situation is still cautious.

Modern era is dramatic. The financial system is so vulnerable that we will be involved easily. Protect yourself.


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