Monday, March 18, 2013

Statement by the Eurogroup President on Cyprus

The Eurogroup president  Jeroen Dijsselbloem in a statement is calling for more "progressivity" in the levy on Cyprus bank deposits. This means large size depositors are likely to experience and even greater levy against their depoists. There is no indication in the statement that small depositors will be spared completely.

Below is the statement in full:
  The Eurogroup held a teleconference this evening to take stock of the situation in Cyprus. 
I recall that the political agreement reached on 16 March on the cornerstones of theadjustment programme and the financing envelope for Cyprus reflects the consensus reached by the Cypriot government with the Eurogroup. The implementation of the reform measures included in the draft programme is the best guarantee for a more prosperous future for Cyprus and its citizens, through a viable financial sector, sound public finances and sustainable economic growth.

I reiterate that the stability levy on deposits is a one-off measure. This measure will -
together with the international financial support - be used to restore the viability of the
Cypriot banking system and hence, safeguard financial stability in Cyprus. In the absence of this measure, Cyprus would have faced scenarios that would have left deposit holders significantly worse off.

The Eurogroup continues to be of the view that small depositors should be treated
differently from large depositors and reaffirms the importance of fully guaranteeing deposits below EUR 100.000. The Cypriot authorities will introduce more progressivity in the one-off levy compared to what was agreed on 16 March, provided that it continues yielding the targeted reduction of the financing envelope and, hence, not impact the overall amount of financial assistance up to EUR 10bn.

The Eurogroup takes note of the authorities' decision to declare a temporary bank holiday in Cyprus on 19-20 March 2013 to safeguard the stability of the financial sector, and urges a swift decision by the Cypriot authorities and parliament to rapidly implement the agreed measures.

The euro area Member States stand ready to assist Cyprus in its reform efforts on the basis of the agreed adjustment programme.


  1. "The Eurogroup takes note of the authorities' decision to declare a temporary bank holiday in Cyprus on 19-20 March 2013"... to give us time to steal their money before they have a chance to withdraw it from our traps.

    1. ya, "You may take an additional moment or two, but we won't wait any longer than that for you to surrender your money."

      Rape [reyp] n. "the act of seizing and carrying off by force."

    2. Two problems:

      1. Only 2 cornerstones instead of the traditional 4
      2. One of the cornerstones is not a stone but an envelope.

      Can I get a job at the IMF now?

  2. So "stability levy" is what we call outright robbery now?

  3. This strikes me as a trial balloon by the IMF, and to judge by the firmness of their position, a rather successful one.

  4. They played their two best cards, fear and envy. Fear of a economic "crisis" and sticking it to the rich.

  5. The facade is crumbling. The true nature of fractional reserve banking, taxes, and fiat money are being revealed to the masses. The repercussions will be dire. Bank deposits will disappear. Tax revenues will dry up. Theft and destruction of state property will increase.

    Let the apologetics of the lap-dog press begin.