This morning Sky reported that the levy on balances over 100k€ had now increased to 60% as per my prediction that it would increase from the 40% to 50%. It just shows you should never underestimate the insensitivity of the Eurocrats to the plight of ordinary people.
Also on cue the human interest story appears in todays DT Money headlined , “Cyprus Grabs Family’s Fortune”. The sold their villa on the island but now cannot bring the 200000€ back to Britain. I warned abou the inverse of this two days ago for would be purchasers. It works both ways as funds are held in Cyprus lawyers accounts with a Cyprus bank will be aggregated in the client escrow account and so subject to the full 60% theft.
Also on cue Richard North reports in his blog EU Referendum blog details of the Bezzle are starting to leak out. http://www.eureferendum.com/ Richard headlines his piece Eurocrash: corruption at heart of Cyprus crisis. Cypriot banks ‘forgave’ loans to MPs and firms. That is the EU way, forgive your cronies and rob the rest.
Richard writes, ” These tell of an unhealthily close relationship between the Cypriot banks and politicians, and with political parties and trades unions. Thus we hear that the Bank of Cyprus and Laiki, between 2007 and 2012 gave loans amounting to millions to these groups, without in any way seeking full repayment.
The Bank of Cyprus wrote off the €2.8-million loan given to a hotel with ties to the communist-rooted Progressive Party (AKEL) and forgave significant portions of many other loans. ”
There is a whole lot more to come. It is too late if you are already involved in Cyprus. But if you are thinking about buying in Spain or Portugal my advice is don’t and if you are selling there it may be best to cut your asking price for a quick sale. This one will run and run unlike Mr Wood’s horse!