The Eurozone finance ministers have agreed that Laiki (Popular) Bank will be wound down and depositors with more than Euros100K will face losses of 40% or more (Schauble's original plan). Those who have deposits of less than this amount will, theoretically, incur no immediate losses.
However, unlike the last "deal", the Cyprus parliament will not be voting on this.
It seems that, once again, the Eurozone sacrifices democracy in order to pursue its Messianic mission!
The chairman of the Cypriot parliament's finance committee, Nicholas Papadopolous, told the BBC said the agreement made "no economic sense":
"We are heading for a deep recession, high unemployment. They wanted to send a message that the Cypriot economy ought to be destroyed, and they've succeeded in a large part - they've destroyed our banking sector."Needless to say the banks, as it a bank holiday, remain closed. As and when they re open will be the litmus test as to whether people believe that this is "fixed".
Clearly anyone with half a brain will empty their bank account immediately, Cyprus has signed its own death warrant and is finished unless it leaves the Eurozone.
Happy Greek Independence Day!
