Cyprus Facing Ruin Regardless Of Deal, Islanders Warn -- The Telegraph
Cyprus may be on the verge of hammering out a deal to address its chronic debt crisis but many Cypriots fear that the island’s economy is destined for ruin regardless.
Nicos Anastasiades, the Cypriot president, and Michalis Sarris, his finance minister, are on their way to Brussels for emergency talks over a deal under which deposits of more than 100,000 euros in the Bank of Cyprus will be hit by a 20 per cent levy.
Deposits of more than 100,000 euros in other banks will be targeted by a four per cent forced levy.
Cyprus’s leaders are expected to submit to the drastic plan - which critics call daylight robbery - in return for a 10 billion euro bail-out loan to save the country from bankruptcy.
Read more ....
My Comment: The key sentence in this post is the following ....
.... Around 70 per cent of Cypriots are employed in the financial services and banking sector, a number that dwarfs the 20 per cent working in tourism.
When you start seizing the assets of individuals and companies who have trusted you with their money .... the end result will be the destruction of trust and capital flight. In this crisis .... no one in my lifetime is going to trust Cyprus as a place to park your money. For all intents and purposes ,,,, Cyprus has just destroyed it`s economy. As for the 70% of the workforce that is presently employed by the financial services and banking sector .... most of them are going to be unemployed within 6 - 12 months .... putting even more strain and pressure on whats is already a devastated and battered economy.