Grand Theft Cyprus: Part II
by Stephen Lendman
Grand theft reflect Western policy.
Cypriot legislators rejected Plan A. At issue was taxing savings accounts over 100,000 euros 9.9% and small depositors 6.75%. Plan B followed.
On March 21, the Financial Times headlined "Cyprus targets big depositors in bank plan," saying:
On Friday, Cypriot legislators will "debate a 61-page bill on the banking system".(L)awmakers (say) they need more time"."
Seven other bills were tabled. One included banking activity restrictions. Issues regarding check cashing and other transactions were addressed.
The Wall Street Journal headlined "Clock Ticks on Cyprus," saying:
Legislators will consider a plan "to restrict noncash transactions, curtail check checking, limit withdrawals and even convert checking accounts into fixed-term deposits"."
Time is short. On March 21, the ECB said emergency liquidity (ELA) ends Monday. It'll do if agreement isn't reached on raising billions of euros internally.
Eurocrats greeted Cyprus' new initiative cautiously. A statement said:
"The eurogroup stands ready to discuss with the Cypriot authorities a draft new proposal, which it expects the Cyprus authorities to present as rapidly as possible."
"The eurogroup would subsequently, on the basis of a troika analysis that needs to be undertaken, be prepared to continue negotiations on an adjustment programme, while respecting the parameters defined earlier by the eurogroup."
A Wall Street Journal editorial was blunt. Cyprus Popular (Laiki Bank) and Bank of Cyprus are insolvent. They're the island state's two largest banks.
"Let them go bust," said the Journal. Instead of negotiating how to inject capital, "time would be better spent arranging for their bankruptcy."