Russia's support for Cyprus' seizures of deposits may mean big money already out

Russia's support for Cyprus' seizures of deposits may mean big money already out

As crisis-ridden Cyprus proceeds with a bank restructuring program that will take as much as 40 percent from large account holders, most of whom are Russian, the Kremlin has made an about-face and supported the plan.

Commentators wondered how Russia could go along with a restructuring that would cost its citizens an estimated four to six billion euros. The reason may be simple: The biggest Russian account holders already have gotten most of their money out of this island tax haven through a gaping loophole, according to some reports.

After a nearly two-week closure, Cyprus banks will reopen Thursday with limits of 300 euros ($383) per day on withdrawals. The European Union and the International Monetary Fund agreed with Cyprus on Monday on the conditions for a loan of $13 billion to the troubled country. The bank restructuring has sparked anti-austerity protests in Nicosia.

Under the terms of the loan, the island's second biggest bank, Laiki, will be closed down and accounts with less than 100,000 euros will be transferred to the larger Bank of Cyprus. A levy to raise billions of euros towards the bailout then will be placed on depositors with more than 100,000 euros, resulting in a an estimated seizure of 40 percent.


http://www.foxnews.com/world/2013/03/28/russia-support-for-cyprus-seizures-deposits-may-mean-big-money-already-out/#ixzz2Op3AuGLq