01 April 2013

CYPRUS / RUSSIA / ECB / IMF : 02 April UPDATE: FinMin Sarris Resigns As Probe Begins; Nicosia Bailout Delivers Severe Buzzcut; Moscow Refuses To Aid Russians; Smuggling Out Money Is Growth Business; President's Relatives Withdrew Money Before Shutdown.

       Finance Minister Michalis Sarris...the man largely responsible for handling negotiations for Cyprus with the Troika...has resigned...as a judicial probe of the island's near bankruptcy has begun.
      His departure comes just days after proposed terms for unfortunate Cypriot savers left with accounts over 100k euros...were revealed.
     The terms are...ugly!
     The promised 'haircut'...has turned out to be a severe buzzcut...with the subtle beauty ...of a scalping!
     Savers with Bank of Cyprus accounts over 100k euros will see 37.5% of their money turned into bank shares of dubious value; another 22.5% will be held in a fund...without interest and liable for further write-offs!
     The remaining 40% will earn interest...but only if the bank sees a profit.
     Savers with uninsured amounts over 100k in the Laiki/Popular Bank...may get only 20% returned...and only after many years.
     Moscow announced that it would not help Russian savers who stand to lose money...calling those losses...'a great shame.'

     AND: With tough capital controls...eg, exit limits of 1,000 euros...a new industry has sprouted-up...smuggling cash out of Cyprus...for hefty fees.
    ALSO: There is also a growing controversy about the 'war of the lists.'
    132 Cypriot companies and individuals suspiciously withdrew 700 million euros days before the nearly 2-week bank shutdown...including relatives of the new president
     To read about 'war of the lists'...and banks' political debt write-offs.