Current Event Cat of the Day

Current Event Cat - Bailout

Current Event Cat of the Day:

With only hours to spare, the government of Cyprus reached a bailout agreement with the European Union. The $10 billion-euro bailout, designed to save the country’s banks from collapse, will protect small savers with deposits under €100,000. Depositors with more than 100,000 euros, many of whom are wealthy Russians using Cyprus as a tax haven, will face big losses. While the actually amount their savings will be taxed is still unknown, it will have to be enough to raise €5.8 billion.

Banks in Cyprus have been closed since last Monday while politicians and officials tried to figure out the whole bailout issue but that hasn’t stopped Cypriots from making ATM runs. On Sunday, Bank of Cyprus further limited cash machine withdrawals to 120 euros a day. Laiki Bank (which will eventually be merged with Bank of Cyprus under the new deal) also lowered its daily limit to 100 euros. I guess that’s what happens when your main industry is off-shore banking…

Via: Current Event Cats

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