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Cyprus bailout - 10% tax on bank accounts

#22
A deal has been made and it seems that the deposits over 100.000€ in the Bank of Cyprus will be taxed (I have read 40%), and the Laiki Bank will be divided in two banks (good and bad). The deposits of the Laiki bank under 100.000€ will be transfered to the Bank of Cyprus and the ones over that will be frozen and a non-specified amount will be taked from those accounts. This is what I know so far.


Regarding the new banking options, does CCLOGIC have any additional information yet?
 
#23
#25
Well all banks will be affected by the rules they apply, but let's see how things will be tomorrow when the banks in Cyprus are in operation. We trust that things will stabilize again soon. Until then, please follow the links in this threads to the major news channels.
 
#27
It is not gone, sooner or later they will release it if that is going to happen at all.. we may all follow the development during the next 24 hours.
 
#29
As you may already be aware, Cyprus has reached an agreement with the EU for the restructuring of its banking system and the provision of loan facilities which will help stabilize the Cyprus economy and lead the country back to growth.


It is no secret that uninsured depositors (amounts in excess of EUR 100,000) will lose money in the two troubled banks (Laiki and Bank of Cyprus).


As a result of the deal, Laiki Bank will be split in two parts – The ‘Good’ Laiki which will take over secured deposits up to €100.000 and performing loans and the ‘Bad’ Laiki which will take over deposits in excess of €100.000 and the non performing loans. ‘Good’ Laiki will be absorbed by Bank of Cyprus.


As far as Bank of Cyprus is concerned, it is estimated that 30% of deposits in excess of €100.000 will be converted into shares of the bank.


All other banks are not affected. These banks (such as USB, Piraeus, Hellenic, etc) will continue normal operations as soon as the banking system is restarted. It is expected that all banks will re open on Thursday, 28th of March.


We do understand the worries of clients and, until things settle down in Cyprus, for clients wishing to open bank accounts abroad, we will try to offer immediate solutions.
 
#30
I heard a few rumors about the capital control measures to be implemented, including the creation of an Cyprus Euro that can not be converted to the normal Euro. It was not explained how this would work and what type of transfer will be allowed or not allowed.


For this reason and all the uncertainty, I would like to have available other banking options urgently because I do not want to receive any more payments in my Cyprus bank account with all these limitations to transactions.


Please update us as soon as possible about the alternative banking options CCLOGIC may have available and when. Thanks.
 
#31
I heard a few rumors about the capital control measures to be implemented, including the creation of an Cyprus Euro that can not be converted to the normal Euro. It was not explained how this would work and what type of transfer will be allowed or not allowed.


For this reason and all the uncertainty, I would like to have available other banking options urgently because I do not want to receive any more payments in my Cyprus bank account with all these limitations to transactions.


Please update us as soon as possible about the alternative banking options CCLOGIC may have available and when. Thanks.
 
#32
Just a side note, as long as you don't have nominees, there are many banks out there that let you open an account with them directly,remotely, without using an intermediary. While I'm sure CC Logic will come around to help you, if you require urgent account opening, you can take matters into your own hands.
 
#33
Cyprus banks will re open today and restrictive measures imposed by Central Bank will apply for a period of 7 days.


The main provisions of these measures are the following:




  1. The maximum amount of cash withdrawal shall not exceed €300 daily or its equivalent in foreign currency, per person in each credit institution.


Provided that any part of the maximum cash withdrawal allowed daily which is not withdrawn by the beneficiary during the day in which the limit applies, may be withdrawn at any time afterwards.

  1. Outgoing transfers outside Cyprus are restricted to:


  1. Payments for transactions that fall within the normal business activity of the customer upon presentation of supporting documents as follows:


  1. Payment of up to €5.000 per day per account is not subject to any restrictive measure,
  2. Payment from €5.001 to €200.000 is subject to the approval by the Central Bank Committee and will be executed within 24 hours.
  3. Payment above €200.001 is subject to the prior approval of the Central Bank Committee which will take into consideration the liquidity buffer situation of the credit institution.


  1. Payments for salaries of employees upon presentation of supporting documents.
  2. Payments and or transfers outside the Republic, via debit and or credit and or prepaid cards, shall not be allowed to exceed €5.000 per month per person in each credit institution.


  1. It is prohibited to terminate fixed term deposits prior to their maturity unless the funds are used to repay a loan within the same credit institution.


  1. On the first maturity of fixed term deposits, the higher amount between €5.000 or 10% of the total amount of the deposit in question, shall, according to the choice of the depositor, either be transferred to a sight/current account or be deposited in a new fixed term deposit in the same credit institution. For the remaining amount the maturity shall be extended for one month.


  1. Sums transferred from a fixed term deposit to a sight/current account shall be subject to the restrictive measures applicable to sight/current accounts.


  1. Exports of euro notes and/or foreign currency notes are prohibited in excess of €1.000, or the equivalent in foreign currency, per natural person per journey abroad. The Director of Customs and Excise Department shall ensure the implementation of this measure.


  1. The restrictive measures apply to all accounts, payments and transfers regardless of the currency denomination.


 
#35
Further to our earlier posting, new incoming funds from abroad are not subject to the restrictions.
 
#36
In my opinion Cyprus has destroyed its reputation by cashing in on large depositors. After doing this they still expect to have incoming funds from abroad? Of course no restrictions on those because they will take 40% of that as well, so more incoming is even better.


Totally unfair decision!
 
#37
Of course no restrictions on those because they will take 40% of that as well,
Click to expand...
That's not true or what IMF and EU said! New incoming transfers will not be affected.
 
#38
Central Bank of Cyprus issued today a new Decree on Restrictive Measures.


The main changes from previous Decree are as follows:

  1. Cashless payment and or transfer of deposit/funds in an account held in another credit institution within the Republic is permitted:


  1. up to €300.000,
  2. Over €300.000 for transactions that fall within the normal business activity of the customer provided Central Bank approval is obtained.


  1. Cashless payments or transfers of deposits/funds to accounts held abroad are prohibited, with the exception of-


Payments for transactions that fall within the normal business activity of the customer upon presentation of justifying documents as follows:

  1. Payments of up to €20.000 per day per account are not subject to the Central Bank’s approval.
  2. Payments from €20.001 to €300.000 is subject to the approval of the Central Bank. A list of the requests for payments falling within this category shall be submitted to the Central Bank in a standardised electronic file. The Central Bank shall communicate its decision within 24 hours.
  3. Payments above €300.000 is subject to the Central Bank’s separate approval.


  1. On the first maturity of fixed term deposits, the higher amount between €5.000 or 20% of the total amount of the deposit in question, shall, according to the choice of the depositor, either be transferred to a sight/current account or be deposited in a new fixed term deposit in the same credit institution. For the remaining amount the maturity shall be extended for one month.


PLEASE NOTE THAT ANY NEW INCOMING FUNDS ARE FREE FROM THE RESTRICTIONS STATED ABOVE.
 
#40
There is nothing wrong to incorporate a company in Cyprus and get the benefits of the lowest tax rate in Europe. All this mess in Cyprus will not affect a company operating a Internet business or doing business outside of Cyprus. Even if you bank with Piraeus Bank Cyprus it may be OK, otherwise it is simple and straight forward to find alternative banks outside of Europe for a Cyprus company so that you can run your business smooth.
 
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