Cyprus Problem | South’s Parliament Expected to Reject Bailout

Cyprus Problem | South’s Parliament Expected to Reject Bailout Conditions

Looks like the south are expected to reject any version of a tax on deposits. If this happens then the damage is probably already done. Money will probably pour out of the south’s banks once they open and without any chance of a quick financial fix the unimaginable may happen. A run on the banks could end up bankrupting them unless measures are put in place to prevent unfettered access to these funds.

If depositors believe the tax may ultimately prove to be the only option and that it will be reintroduced at a later stage then only a fool would leave their money in a bank likely to be hit by the tax. Fool me once shame on you, fool me twice shame on me…

Print Friendly, PDF & Email

Comments are closed.