Insurance Firms and Charities in Cyprus Will Suffer Deposits Haircut, Says Central Bank

April 23, 2013 • 10:18AM

In Cyprus the rules have been changed again to steal from depositors. The Cyprus central bank announced that insurance companies, charities, and private educational institutions would lose 27.5% of their savings deposits in Bank of Cyprus. Under a previous arrangement, they would have been excluded. The Greek Orthodox Church, which is the largest charity organization on the island lost over EU100 million.

Bank of Cyprus depositors are already facing a certain 37.5% loss on deposits over EU100,000 — to be exchanged for bank shares, while another 22.5% is frozen depending on the cost of restructuring. Savers in that bank will have to wait years, if ever, to see any of their cash over EU100,000.

The Bank of Cyprus was the "good" bank that is being restructured. Those who had deposits in the bad bank, Laiki Bank which was closed down, lost everything above EU100,000.

Addressing a conference of Speakers of European Union Parliaments, Cyprus Parliament Speaker Yiannakis Omirou denounced the "malicious and slanderous aggression against Cyprus'" fiscal system and financial regime by the Eurogroup and the Troika, and their so-called "bailout" for Cyprus. The policy of the Troika has only "deepened recession while the state of welfare and social prosperity has been dismantled, unemployment has escalated and all walks of society, particularly the vulnerable social groups, have been affected."

According to the Famagusta Gazette, he continued his denunciation, declaring "where has solidarity gone, Ladies and Gentlemen Colleagues? Is this solidarity, the founding principle of the European family?" He added that citizens of Europe have lost trust have questioned the credibility of governments and European institutions, which has led to despair, uncertainty and euro-skepticism throughout the population.