More news out of Cyprus:
With banks confiscating up to 80 percent of uninsured
deposits over 100,000 euros ($130,000) and the country facing a deep
economic crisis, Cyprus has forgiven loans to politicians and companies
while others are generally being required to pay in full, media reports
said, setting off fury on the island country. The Greek newspaper Ethnos and the website 24h.com.cy said that
loans to Members of Parliament from the three major political parties
and other officials in the public administration from the Bank of Cyprus
and Cyprus Popular Bank (Laiki) will be written down or off.
Not a bad deal. The correct conclusion by the average Cypriot, I would imagine, is that there is no reason they should not insist on all of their debts being written off as well.
UPDATE: Forget Spain and Italy. CANADA could be next:
As part of the 2013 budget in Canada, the Minister of Finance tabled the Economic Action Plan 2013 which included the newest buzzword ‘bail-in’.
Source: budget.gc.ca/…/… Page 145
“The Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.”