Cyprus Banks

[Scunner]

Investing your money in another country is riskier than at home. They take that risk and the rewards or losses that brings. I fail to see why the Brirish government should spend OUR money to compensate them.

Obviously it is different for those stationed there or working for our country there.

[Steve (redding43)]

Investing your money in another country is riskier than at home. They take that risk and the rewards or losses that brings. I fail to see why the Brirish government should spend OUR money to compensate them.

Obviously it is different for those stationed there or working for our country there.

I heard about this story yesterday and the governments position today. I agree with Keith, where the UK are paying for military or government etc to work there then they should be protected. I don't agree for any others that have moved themselves and/or their money there

[Lotty]

I agree with Scunner too, obviously the armed forces should be protected as they are posted there on our behalf, but others are there of their own volition. Why should we compensate when it goes wrong? Are they paying UK tax on their investment income?

[bewva]

I agree with the last 3 posts.

[SJK]

The Cyprus situation is a little different than any other bail out we have seen in the past. Cyprus is well known to harbour a lot of wrong money hence the now impossible situation that they have a banking industry five times the size their economy warrants. It is perhaps not fair for bonafide pensioners but by imposing this tax they expect to get 6 billion euro's! Assuming that the 10% "penalty" is generally imposed because of the size of the holdings, we are talking about 50 to 60 BILLION Euro's parked on a small island. That isn't the money of the ex pat pensioners community but mainly Russian money who don't wish to pay any tax or obtained the money by illicit means. It has been well known in the financial industry that "clients" who had a bank account in Cyprus were best avoided as it only meant trouble and often shady dealings. If you didn't have anywhere else to go, you were always welcome there.
I think this is not a blue print for any other future aid packages in the normal countries where they adhere to anti laundering laws. Germany simply refused (and rightly so) to have tax payers money to save and bail out these "financial institutions", that would have been much worse .Nonetheless not nice if you retired to Cyprus and choose to have an account with the first national bank of cyprus.

[Highlander]

I confess not to knowing if some of the following elements are correct, so you will have to treat it as hypothetical .

There will be British Embassies and Consulates in Cyprus. These will be manned by Civil Servants but will not be self sufficient.

They will therefore rely on numerous businesses providing the necessary goods and/or services without which they could not operate.

Let’s assume that these goods and services are provided by people who are British taxpayers (I genuinely don’t know how big an assumption that is).

So the UK Government are suggesting that the people receiving the service are to be protected but those providing it are not.

[Scunner]

So, if I opened a bakery in Cyprus, supplying bread to the embassy, the money I have made out there, in my private bank account should be underwritten and safeguarded by the British government because without me he embassy staff wouldn't be able to buy cakes?

[Scunner]

If the Turkish government went bankrupt and took 25% from all bank accounts, would you expect the British Government to give it all back to the expats out there so they aren't out of pocket?

[Highlander]

Surprisingly, I wasn't thinking of cakes.

[Scunner]

I still can't work out why you are outraged!