"As recently as in January, Cypriot banks offered 4.5% for a 1-year deposit while other peripheral countries, including Italy and Spain, offered about 2.5%, and Germany 0.9%. Since 2008, a depositor in Cyprus has earned 31% in yield (before tax), compared with 15%-18% in Italy and Spain and 8% in Germany. Now do your math on these numbers: A Cypriot (or foreigner) who placed €100,000 in deposit in Cyprus in 2008 would by now have earned just around €15,000 more than if he had placed that money in Italy or Spain (and some €23,000 more than if he had placed it in Germany.) Why does the Cypriot parliament (and many commentators) seem to suggest that a 15% tax on such deposits (which would cover the bill also for the sub-100,000 Euro deposits) would be unreasonable now the banks are in trouble?"
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timeasmymeasure
Another article...
Date: 2013-03-20 11:22 pm (UTC)"As recently as in January, Cypriot banks offered 4.5% for a 1-year deposit while other peripheral countries, including Italy and Spain, offered about 2.5%, and Germany 0.9%. Since 2008, a depositor in Cyprus has earned 31% in yield (before tax), compared with 15%-18% in Italy and Spain and 8% in Germany. Now do your math on these numbers: A Cypriot (or foreigner) who placed €100,000 in deposit in Cyprus in 2008 would by now have earned just around €15,000 more than if he had placed that money in Italy or Spain (and some €23,000 more than if he had placed it in Germany.) Why does the Cypriot parliament (and many commentators) seem to suggest that a 15% tax on such deposits (which would cover the bill also for the sub-100,000 Euro deposits) would be unreasonable now the banks are in trouble?"