Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/18/2013 (1 year 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 (1 year 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'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for November 2014
Lonely people:
That all who suffer loneliness may experience the closeness of God and the support of others.
Mentors of seminarians and religious: That young seminarians and religious may have wise and well-formed mentors.



Comments


More Europe

Evangelical, Missionary Pope Francis Calls Europe to Return to Jesus Christ and Christian Roots Watch

Image of The European Parliament building

By Deacon Keith A Fournier

I believe that Europe has many resources for going forward. It's like a sickness that Europe has today. A wound. And the greatest resource is the person of Jesus. Europe, return to Jesus! Return to that Jesus whom you have said was not in your roots! And this is ... continue reading


SCARY VIDEO! What the heck blew up in Russia's sky? Was it a meteor or something stranger?! Watch

Image of A still taken from footage of the phenomena that took place in Russia on November 14.

By Catholic Online (NEWS CONSORTIUM)

What was the mysterious phenomena that occurred in Russia and was witnessed and captured on camera by dozens of motorists? It appears that nobody knows for sure, and even experts are left scratching their heads while they struggle to find reasonable explanations. ... continue reading


Who really was Jack the Ripper? New evidence points to one man Watch

Image of A criminologist from England may have new evidence that points towards the real identity of Jack the Ripper.

By Catholic Online (NEWS CONSORTIUM)

A new theory about the identity of infamous 19th century London serial killer Jack the Ripper may explain why the murderer was able to elude contemporary and modern authorities for so long and escape justice. LOS ANGELES, CA (Catholic Online) - Dr. Gareth Norris, a ... continue reading


Which countries drink the most beer? Our list may surprise you! Watch

Image of Beer is one of the most widely consumed beverages in the world.

By Catholic Online (NEWS CONSORTIUM)

Who still drinks beer?  Beer is one of the most widely consumed beverages, behind water and tea.  Beer is also a Catholic tradition, alongside wine-making, and has been widely practiced in monasteries, especially in Europe. Now, a list has emerged detailing ... continue reading


To raise money for the poor, Pope Francis to raffle gifts Watch

Image of The tickets are only a modest Ä10, but this includes a new Fiat Panda 4x4, with all optional extras.

By Catholic Online (NEWS CONSORTIUM)

Talking the talk, walking the walk: Pope Francis has done it again. The pontiff is raffling gifts that have been given to him in order to raise money for the poor. Posters announcing the raffle have gone up all over Vatican City. LOS ANGELES, CA (Catholic ... continue reading


Russia could destabilize Eastern Europe if Ukraine left unchecked, Merkel warns Watch

Image of It's exceedingly tough talk from German Chancellor Angela Merkel. She says that Russia's annexation of Crimea and subsequent destabilization of eastern Ukraine

By Catholic Online (NEWS CONSORTIUM)

It's exceedingly tough talk from German Chancellor Angela Merkel. She says that Russia's annexation of Crimea and subsequent destabilization of eastern Ukraine "called the whole of the European peaceful order into question." Adding to the gloomy outlook was a ... continue reading


The Pope Who Builds Showers for the Poor under St Peters Rattles our Comfort Zones Watch

Image of Pope Francis embracing Jesus in the face of the poor

By Deacon Keith A Fournier

Those who love the poor - like Jesus loved the poor- are an instruction manual for the rest of us. They are a sign of the kingdom, making it present in their wake. We have such a man in this Pope named Francis. He recognizes that poverty is more than a lack of ... continue reading


Theory: Putin doesn't want war -- he's selling Russian hardware Watch

Image of Putin is playing a dangerous game on brinkmanship with the world -- or he is trying to sell hardware. Nobody is sure.

By Catholic Online (NEWS CONSORTIUM)

Vladimir Putin continues to rattle his saber at the western world with bomber flights, naval deployments and the movement of troops within Russia. Some fear the world may be on the brink of a new cold war with the old superpower. LOS ANGELES, CA (Catholic Online) - As ... continue reading


More Catholic Than the Pope? Francis Calls Catholics to Work and Pray with Evangelical Protestants Watch

Image of Pope Francis realistically acknowledges the differences and distinctives in doctrine and practice - as well as the divisions among us. However, he focuses on our common Baptism and shared mission in this decisive moment in Christian history. His message is powerful, prophetic and should be read by every Christian, as well as every other person of faith and good will.

By Deacon Keith A Fournier

Pope Francis carries the burden for Christian unity in his heart, proclaims it in his words, and steps it into his actions. The hoped for healing of our divisions and call to collaboration proceeded from the Second Vatican Council in the Catholic Church and was ... continue reading


Catholic Cardinal fires back at illegal gay marriages in Italy Watch

Image of While gay marriage is illegal in Italy, many city mayors have begun recognizing same-sex marriages performed outside Italy, which has led to great criticism.

By Catholic Online (NEWS CONSORTIUM)

A Catholic Cardinal is warning that gay marriage may lead to the destruction of family structure if it becomes culturally accepted by the Catholic Church. LOS ANGELES, CA (Catholic Online) - Cardinal Angelo Bagnasco, the head of the Italian Bishops Conference gave ... 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, Revelation 14:1-3, 4-5
1 Next in my vision I saw Mount Zion, and standing on ... Read More

Psalm, Psalms 24:1-2, 3-4, 5-6
1 [Psalm Of David] To Yahweh belong the earth and all ... Read More

Gospel, Luke 21:1-4
1 Looking up, he saw rich people putting their ... Read More

Saint of the Day

Saint of the Day for November 24th, 2014 Image

St. Andrew Dung Lac
November 24: Through the missionary efforts of various religious families ... 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