Euro-area finance ministers agreed to an unprecedented tax on Cypriot bank deposits as officials unveiled a 10 billion-euro ($13 billion) rescue plan for the country, the fifth since Europe’s debt crisis broke out in 2009.http://www.bloomberg.com/...
Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros -- the ceiling for European Union account insurance -- and 9.9 percent above that.
Imagine that. You have $2,000 in your bank account and over the weekend the government takes $135 to pay its bills.
Funds to pay the levy were frozen in accounts immediately, ECB Executive Board Member Joerg Asmussen said. The levy will be assessed before Cypriot banks reopen on March 19 after a March 18 national holiday. Sarris said electronic transfers will also be limited until then.And your account is frozen as ATMs run out of cash.
And get this:
Depositors will receive bank equity as compensation.As compensation you get stock in the bank where your money formerly was.
Debt is serious business. And to think we had a budget surplus when Clinton left office.