The overwhelming majority of the German electorate is opposed to bailing out the periphery, while 78 percent of the German electorate would like to see Greece exit the Euro.
The point isn't to make the depositors whole: it's to stop a bank run forming in the first place.
These deposits are covered by the corresponding deposit protection scheme established in the country of incorporation.
However, there is this one further detail that could have seriously bad effects : Euro-area finance ministers agreed to an unprecedented tax on Cypriot bank deposits as officials unveiled a 10 billion-euro (13 billion) rescue plan for the country, the fifth since Europes debt crisis.How important this is will clearly adresse casino saint amand depend on how many people take note.However, all the clues now appear to be pointing in the opposite direction.Indeed, it has something to recommend it: if it happens occasionally then people will take more care over where they put their money and what the banks do with.Under the system until yesterday all depositors in Cypriot banks were insured up to the value of 100,000 with any one bank.Given how high are the economic and political stakes of a potential disorderly unraveling of the Euro, when Europe again stares into the abyss, it is always possible that the Germans will blink and cough up the needed money to keep the Euro afloat despite.At each stage of the crisis, she has only rather grudgingly agreed to IMF-EU bailout packages for Greece, Ireland, and Portugal.So, something needed to be done.The Constitutional Court has only indicated that it will hand down its ruling by September.That, cyprus and its banks need bailing out is beyond doubt.Please remember to include contact information on the cover page for the corresponding author.Topics of interest include, but are not limited to, the following: - Access to mainstream financial services - Emerging or alternative financial products or services, such as prepaid debit cards or mobile financial services - Household financial literacy and capability - Household consumption and savings.This is a known fragility of the system.Moody's decision, earlier this week, to put Germany's sovereign bonds on negative watch for a possible rating downgrade - because of the potential cost of a Greek exit from the Euro to the German Treasury - will only fan the flames of the debate.But, what if the government then reneges on a promise to insure depositors?Perhaps I am over-emphasising this.Merkel has consistently insisted on conditions for each of the IMF-EU bailout packages.Largely because they were heavily invested in Greek Government bonds which then, as we all know, suffered two substantial haircuts.Germany thus creating that very bank run everyone is trying to avoid?Note that last number.
Where a bank is unable to pay its deposits, the relevant decision is adopted by the Central Bank of Cyprus or, where a member bank is incorporated in a country outside the Republic of Cyprus, by the competent supervisory authority of the country of incorporation.
The imposed austerity measures are meant tipps für casino roulette to correct the country's underlying public finance imbalances through a policy of draconian public spending cuts and tax hikes.
It really does strike me as an extraordinary decision, one that will have unpredictable long-term effects.
Iceland and all its banks went bankrupt the Icelandic government did keep its promises under the deposit insurance scheme that it had.
Merkel did so despite the fact that within the Euro straitjacket those conditions have considerably deepened the economic recessions in the periphery and given rise to serious political resistance in the affected countries against further austerity measures.