Cyprus Bailout | In the Confusion Anything Goes
Gradually, the bailout background cause is beginning to be revealed and it seems the reason for the Laiki and Cyprus Banks getting into trouble might be nothing to do with money laundering. Other, more stable banks were allegedly being used for those funds. It seems that the two banks in trouble were the two basic commercial banks used by locals and they were in trouble for a very fundamental reason. It was because they invested their deposits badly! Mainly in Greek and Cypriot Government Bonds, according to Forbes.
According to other sources, the current President’s family ‘intuitively’ knew the deposit levy was coming and their company shifted tens of millions of funds out of the ailing banks, according to the south’s Haravgi newspaper.
‘The newspaper, which is affiliated to the communist-rooted AKEL party, reports that three days before the Eurogroup meeting the company took five promissory notes worth €21m from Laiki Bank and transferred the money to London.’ [ZeroHedge]
The Church of Cyprus has managed to lead the way in blocking the bailout levy on their own deposits and it is expected they’ll be a flood of similar actions potentially making a mockery of the process. Mind you, the banks would have had their Euros by then wouldn’t they, they’ll be no need to pay back the loan, that’s the Cyprus way isn’t it?
According to the UK Independent newspaper, the south’s youth are increasingly focusing their anger on immigrants and the expectation is that far-right neo-Nazi groups will grow along with economic discontent. Not exactly the environment for a United Cyprus is it?
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