Thursday, March 28, 2013
Can Cyprus deal happen elsewhere?
As you well know (unless you have been in outer space) the Cyprus government has agreed with the international financial institutions (read European Central Bank) that they will get the money from them and raise billions internally by imposing a tax on any deposit above EUR 100,000.00 and the bond depositors of the two biggest banks in Cyprus will take a direct hit and lose a lot of money Since the events are folding very rapidly, conditions could change on the ground but that is the crux of the deal that the Cyprus government has agreed to. Many thousands of Cypriots will lose their jobs in this process and the European Union has saved another country on the brink with tax payers and individual's money. Unless you are in the shoes of the Cypriot public, you would not know how that will feel but it will be really painful for them after enjoying the party for a long time. As you know in my blog, I just voice my opinion about matters that are happening or that I think that should go a certain way and here again I believe that the deal is not that great (unless you believe that it was the best deal out of all the bad ones). If you happen to be in one of the banks slated to be closed, you will be unemployed in no time and also the people who has money beyond the limit of EUR 100,000.00 will also have to pay fees. Now although it has been said that most of the accounts are for the rich people but how do they know that. Most of the people take a lifetime to accumulate that amount of money only now to lose out in this fiasco is not fair or just.