Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/18/2013 (2 years ago)

Catholic Online (www.catholic.org)

Cypriots with cash in bank lose between 6.75 and 9.9 percent of savings under levy

Shares and the bonds of struggling euro zone governments were sent tumbling under the terms of a financial bailout in Cyprus. The surprise decision by euro zone leaders to tax bank deposits sent shockwaves throughout the European and international markets.

Fearful that a large percentage of their savings will be wiped out with a bail-out plan, Cypriots rushed ATMs to withdraw funds.

Fearful that a large percentage of their savings will be wiped out with a bail-out plan, Cypriots rushed ATMs to withdraw funds.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/18/2013 (2 years ago)

Published in Europe

Keywords: Cyprus, savings, bailout, euro zone


LOS ANGELES, CA (Catholic Online) - The bloc struck a deal this past weekend to hand Cyprus rescue loans worth $13 billion in U.S. dollars. The decision defied numerous warnings, including those from the European Central Bank and imposed a levy against those with savings in the bank. Those who put a little away in Cyprus now stand to lose between 6.75 and 9.9 percent of their money.

The parliament here put off a vote on the measure until later this week. There is widespread public anger in Cyprus and the government has assured the citizenry it was already looking to ease the pain for small savers.

Cyprus would be unable to avoid a default barring the bailout, undermining the promise that Greece's debt write-down last year was a one-off. The unprecedented move to hit depositors adds a shocking new dimension to the euro zone crisis.

The economic reaction came as no surprise. Shares tumbled lower; the euro fell to a new three-month low, while safe-haven assets such as gold and German government bonds jumped. The cost of insuring the debt of even high-quality European banks against default rose sharply with analysts citing fears the decision could spark contagion across peripheral regions with the potential for widespread outflows of deposits.

"If I were a saver, certainly in Spain or maybe Italy, I think I'd be looking askance at these measures and think this could yet happen to me," global financial economist at Commerzbank Peter Dixon said.

Some credit default swaps in Spanish, Italian and Portuguese banks widened more sharply with the five-year CDS for Spain's Santander 30 basis points higher, while for Italy's UniCredit it was 23.5 basis points wider.

Markets were drawing support from a view that the safety measures put in place at the European Central Bank should contain the fallout.

"Clearly this is a negative development for European assets but in the terms of contagion we think it is quite limited," Guillermo Felices, head euro asset allocation at Barclays in London said.

"There are tools - such as the ECB's OMT (bond buying program) and the option of more 3-year LTROs (ECB loans to banks) that can provide liquidity if needed - that the market will feel comfortable about when assessing the longer-term implications."

Three of the world's biggest central banks are also expected to signal their fresh commitment to loose monetary policies this week.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Europe

Pope canonizes first Arabic-speaking saints in church's history Watch

Image of Sister Marie Alphonsine Ghattas, born in Jerusalem in 1847, opened girls' schools, fought female illiteracy and co-founded the Congregation of the Sisters of the Rosary.

By Catholic Online (NEWS CONSORTIUM)

It was seen as a gesture of goodwill to Christians living in the Middle East. Pope Francis described Palestinian leader Mahmoud Abbas as an "angel of peace" before canonizing two 19th century nuns. LOS ANGELES, CA (Catholic Online) - Sisters Mariam Bawardy and ... continue reading


Israel incensed as the Vatican recognizes the state of Palestine Watch

Image of Both the United States and Israel oppose recognition, arguing that it undermines U.S.-led efforts to negotiate an Israeli-Palestinian deal on the terms of Palestinian statehood.

By Catholic Online (NEWS CONSORTIUM)

The decision is an extremely unpopular one for Israel - the Vatican has recognized the State of Palestine in a new treaty. The treaty concerns the activities of the Catholic Church in Palestinian territory. It's a dramatic demonstration of the turnaround in the ... continue reading


Grandfather transforms three-bedroom home into stunning replica of Sistine Chapel Watch

Image of It took Robert Burns three times as long to complete his work as it took painter Michelangelo to complete his masterpiece in Rome.

By Catholic Online (NEWS CONSORTIUM)

It took 12 long years, but Robert Burns of Brighton, England has finally completed his dream project of turning his three-bedroom home into a replica of the Sistine Chapel. The 67-year-old former interior decorator was inspired by Renaissance painters and ... continue reading


Is the Holy See taking action against Medjugorje?

Image of

By Matt C. Abbott

Catholic Christians who are familiar with the alleged Marian apparitions in Medjugorje, Bosnia-Herzegovina, might be interested in the following developments. Although a definitive judgment has yet to be announced by the Church-a commission formed by the ... continue reading


Venus de Milo - a prostitute? New evidence offers intriguing new theories Watch

Image of A San Francisco-based designer has recreated the sculpture as a spinner, which was a pursuit popular with idle prostitutes in ancient Greece.

By Catholic Online (NEWS CONSORTIUM)

Sometimes what is missing fills in an otherwise incomplete story. There is new evidence suggesting that the model for the famous Venus de Milo statue may have been a prostitute. A new 3-D reconstruction suggests that the statue was spinning yarn in the manner ... continue reading


The mystery behind 'the Devil's Bible': Europe's largest surviving manuscript Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Europe's largest surviving manuscript, the Codex Gigas, is commonly referred to as "the Devil's Bible' by many who are left baffled by the mysterious text. LOS ANGELES, CA (Catholic Online) - The manuscript, held in the National Library of Sweden in Stockholm, is ... continue reading


Fatima prophecies 'lift veil' on anti-Christian persecution today, Vatican cardinal says Watch

Image of The Virgin Mary appeared to three shepherd children in Fatima, Portugal, in 1917, and confided in them three secrets. Carmelite Sister Lucia dos Santos, one of the visionaries, wrote them down years later.

By Catholic Online (NEWS CONSORTIUM)

The "secrets" of Our Lady of Fatima tell of today's Christian persecution, in addition to the martyrdom of the past century, Cardinal Angelo Amato of the Vatican has declared. The cardinal had "the privilege" of reading the original manuscripts of the secrets of ... continue reading


Malfunctioned fair ride leaves terrified passengers suspended at 200 feet Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Thrill seekers were left hanging upside down on a fairground ride in Holland for almost an hour. The group consisting of seven riders, were riding the "Booster" ride at a spring fair in Didam, Netherlands. MUNTINLUPA, PHILIPPINES (Catholic Online) -The local newspaper, ... continue reading


Fears regarding Pope Francis' health resurface after he says he is 'a bit old and sick' Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Telling parishioners he is "a bit old and a bit sick," new fears for the health of Pope Francis have resurfaced. The pope asked a group of elderly and disabled people to pray for him, warning that he was also suffering from heath problems. LOS ANGELES, CA ... continue reading


Queen Elizabeth meets royal baby Charlotte Elizabeth Diana Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

The royal newborn baby to the Duke and Duchess of Cambridge, William and Kate, was finally visited by the 89-year-old Queen. She went to Kensington Palace and was introduced to her fifth great-grandchild Charlotte Elizabeth Diana, born May 2, 2015. The baby's first ... continue reading


All Europe News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Sirach 17:19-27
19 Their actions are all as plain as the sun to him, ... Read More

Psalm, Psalms 32:1-2, 5, 6, 7
1 [Of David Poem] How blessed are those whose offence ... Read More

Gospel, Mark 10:17-27
17 He was setting out on a journey when a man ran up, ... Read More

Saint of the Day

Saint of the Day for May 25th, 2015 Image

St. Mary Magdalene de Pazzi
May 25: It would be easy to concentrate on the mystical experiences God ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter