I'm wondering about jackpot capital. They are liscenced in Cyprus
It's more a question of how much money they have there.
It seems this tax on bank deposits is similar to a 20% devaluation of the currency, an option unavailable to countries using the Euro. It has a similar effect of removing spending power from the public and placing it into the treasury.
The end result could be worse though. A devaluation would make imports more expensive, and the public would not notice the reduction in spending power if they bought locally produced goods. The deposit tax is going to get noticed, and as well as reducing demand for imports, will reduce demand for everything. Things that have to be bought like food and fuel are likely to be hit the least, but this means a disproportionate effect on non essential goods. This in turn could drive the businesses that supply such goods into losses, even bankruptcy. There are bound to be job losses, a drop in tax revenue, and an increase in expenditure on supporting the poorest in society.
Cyprus may be better off bailing out of the Euro and reintroducing their former currency, striking an exchange rate with the Euro that is best for their economy.
If they started to discuss this seriously in their parliament, we would quickly find out whether or not Germany was bluffing.
It seems to have cost the president his job, as I also read that a new president would be found.
It's still a proposal, and the EU has to accept this move as sufficient for a bailout. This may of course allow time for the very wealthy to minimise the effect, leaving the less well off to pick up the bill.
