Oh well at least our tax free personal allowance is going up to £10,000 per annum, still £5,000 per annum less than Cyprus though. I think Cyprus really has to re-think the way it taxes people or they will never get out of the mess they are in. Everything has to be paid for somehow, otherwise how do you get roads, police, schools, ambulance, drs, you can't keep looking at the EU and the Euro as some kind of Cash Cow, it wont work in the long run. Maybe if folk had been paying a reasonable amount of tax in a sensible way over the last decade or so this sorry situation may never have come about.

Most politicians seem to make a mess of things but the Cypriot ones seem to be in a class of their own to have brought their own peoples to this. is there somewhere that talks about seven fat years followed by seven thin years that could be the outcome.

I think the ECB have just given Cyprus a drop dead date, if they dont come up with a plan to chip in their contribution of 5.8 billion the offer of the 10 billion from europe is (so they say) withdrawn on Monday.

Perhaps that will finally galvanise the Cypriot govenment into action, to come up with a sustainable financial plane, they alread owe the Russians 2. something billion, so they need their thinking caps on.

Still no solution.....
Banks are now only allowing people to withdraw using the bank card for their own particular bank so cannot use a card from another bank (say BOC in Laiki). Rumour this morning was that Laiki is already down the pan and there were queues of 30+ people at every Laiki ATM.
Many places are now demanding cash only payments, we know of one food supplier reported today who has laid staff off until Tuesday when supposedly the banks will reopen.
A lot of the older people still have passbooks to get their funds and not ATM cards....
The people aren't particularly angry but were pleased the President didn't just give in to the troika and roll over and die. That's what the cheering and celebration was about on Tuesday evening. That may change if they can no longer get cash out of the machines though...

Getting daytime news feeds from here: http://www.telegraph.co.uk/finance/debt-crisis-live/9945121/Cyprus-bailout-live.html

What a dreadful time for everyone in Cyprus

cyprus100 wrote:

Still no solution.....
Banks are now only allowing people to withdraw using the bank card for their own particular bank so cannot use a card from another bank (say BOC in Laiki). Rumour this morning was that Laiki is already down the pan and there were queues of 30+ people at every Laiki ATM.
Many places are now demanding cash only payments, we know of one food supplier reported today who has laid staff off until Tuesday when supposedly the banks will reopen.
A lot of the older people still have passbooks to get their funds and not ATM cards....
The people aren't particularly angry but were pleased the President didn't just give in to the troika and roll over and die. That's what the cheering and celebration was about on Tuesday evening. That may change if they can no longer get cash out of the machines though...

Getting daytime news feeds from here: http://www.telegraph.co.uk/finance/debt-crisis-live/9945121/Cyprus-bailout-live.html

It's not sounding good Shell Let's hope that the Cypriot Governments plan B is a good one; as you say it is such people as the elderly who use old fashioned systems like pass books that really suffer.

Surely they will have to put Capital Controls on the Cypriot Banks on Tuesday morning when they re-open for business, otherwise there will be an almighty cash run on their Euros when the IMF releases the funds. I'm sure other have put Capital Controls on their banks for 12 months, if they don't all the Euros might exit the system. The Cypriot government need to preserve them for the good of the Country. How will they buy gas i.e. petrol, derv, aviation fuel, the fundamentals that a modern Country needs to keep going ?

Already booked (for the tenth time!) for a vacation in (southern) Cyprus this summer, just wondering what is happening about the relationship with the north during this terrible situation?
It doesn’t seem to be mentioned in any news here – but what is the “Turkish occupied” area doing now? Are they also in trouble?

My daughter was just about to book a week in Cyprus for June - she has backed off temporarily for obvious reasons - lets hope they can get something fair sorted soon -otherwise holiday bookings are really going to suffer.

I don't understand this thing with British holiday makers of backing off just because of a few domestic financial problems in the destination countries, The same thing happened in Greece last year,OK a few places may have to close but on the whole things will run as normal,
We went to Greece twice last year and the resorts in the main continued as normal, the same when we went to Cyprus last month.
BOTH these countries rely on the holiday trade for the bulk of their foreign exchange, likewise the local workers in the hospitality industries bank on earning their money through the holiday season as there is not much work in the winter months
THE BEST support we can offer these countries [and i include Spain & Portugal both also in financial difficulties] is to continue to holiday and spend money

ukbill

i did answer you but the post seems to have got lost,
the troubles in the south have no consequences on the north,

the tavernas and bars in the south are hoping for a better season than last year, too many holiday makers in recent years [mainly from the former eastern block countries] go all inclusive and spend next to nothing once on holiday [which don't help the general economy

Wiz]

Wizard - I holidayed in Greece last year -so I understand what you are saying - everything seemed relatively normal in Rhodes for instance - but it just seems as if the problems in Cyprus are even more serious because of the relatively small size of the economy compared with the indebtedness of the banks. Also the crisis has "blown up" quite close to the start of the holiday season.
Anyone thinking of booking for the Summer will have to pay the whole balance quite soon.

Dave,
This hasn't blown up recently, many of us have been following this situation for the last 18 months or so, the country has been technical bankrupt for about 2 years, the last government covered, and its backside with a loan from Russia and raiding the coffers of the SGO's [Telecom's,electricity etc]
Those of us who are commentators in the Cyprus Press have seen how the last government twisted the truth and wasted what was a healthy surplus when they came into office.

all i can say is take sterling and change it locally

wiz

Wizard HT Mod wrote:

I don't understand this thing with British holiday makers of backing off just because of a few domestic financial problems in the destination countries, The same thing happened in Greece last year,OK a few places may have to close but on the whole things will run as normal,
We went to Greece twice last year and the resorts in the main continued as normal, the same when we went to Cyprus last month.
BOTH these countries rely on the holiday trade for the bulk of their foreign exchange, likewise the local workers in the hospitality industries bank on earning their money through the holiday season as there is not much work in the winter months
THE BEST support we can offer these countries [and i include Spain & Portugal both also in financial difficulties] is to continue to holiday and spend money

I tend to agree Brian, I have still been going to Spain for the last four years, even though financially the place is a bit if a mess and meals out for five in a decent restaurant were nearly 200 euros a night last year. But apart from that provided you have the money there really is no reason not to go.

Brits who like Cyprus should maybe still go if their holiday is a few months away, this will have to be sorted by the middle of next week one way or another. Think it is just that cash will be king for a while.

Doe

Nothing much has changed - except we're getting reports from shops that some of their local suppliers are asking for cash payments for restocking supplies now.
Some petrol stations are asking for cash too instead of card payments - but the multi's like Petrolina, Esso etc are still accepting cards.
ATM withdrawals in Laiki bank were restricted to €200 per day on Thursday evening.

They've indicated that when the banks reopen there will be restrictions on cash withdrawals and movement of funds in general. That will be when the fun starts and reality will set in, I believe...

People are still carrying out their everyday lives with not much change other than making sure you have enough ready cash in your pocket which is something I never do. The only time I buy anything independently from my husband are top up cards for my phone and I buy them online as a rule. Hubby fills up my car for me with fuel and he does the shopping while I'm at work. So now, I will have to make sure I've always got at least €10 in my pocket for a SoEasy phone card just in case I can no longer buy one online.

Either way, we will know what's happening by Monday as that's supposed to be the deadline set by the ECB.

Russia have supposedly said they haven't yet fully ruled out an offer of help even though our Finance Minister apparently returned from Moscow on Friday morning without a "deal". It would be a way for Russia to get a foot in the door of Europe and we assume they would like our gas field so maybe they're holding back till the final hour?

I think the reason some people are backing off is because they are worried about riots (civil unrest) or mugging s from having to take large amounts of cash.

We were supposed to be going to Tenerife on Saturday but had the apartment we had rented withdrawn as the Canarian government have clamped down on what they call illegal lets and are fining apartment owners. Result tourists not going, less money beng spent in restaurants, shops etc. We decided we did not want to risk the same thing happening so changed dates and country (only reason for Tenerife was for the weather at Easter). So we switched our flights (incurring extra £530 cost even though our eldest is now not going and the cost of his flight is lost) and we are now going in July to Cyprus.

Like a numpty though I haven't got around to sorting out our holiday insurance yet, so I imagine if I take it out now we won't be covered should everything go belly up!

I am hoping though that this crisis will be sorted shortly and some plan will be put into action.

Comment to Sanji though, we do not pay 20% a year on the balance of our savings here, we pay 20% on the interest, that's a big difference. Although I will be the first to admit we are taxed to the hilt everywhere else!

Loads of people must be due to fly out for Easter. They risk losing their money if they decide to cancel. Have to say I wouldn't fancy taking all spending money as cash. But I suppose there is not a lot of choice- apart from gambling you will still get money from ATMs.
However, if you want to book a last minute break- perhaps you will see some bargains?

...not strictly on topic..but interesting comment by kazd re Tenerife lets - this was happening in the Greek islands last year -hate to think how many people have got apartments in these places and happly rent them out without any of the necessary permits or pay local taxes -suspect the same applies in Cyprus?

Also re taking cash - because of the (potential) problems in Greece I took over 1200 euos last Summer to Rhodes - must say I felt very uneasy on the flight out!!

latest update from the Cyprus Mail

I know what you mean Dave, you just can't seem to relax when you know you are carrying a lot of cash.

I do feel for the Cypriots and those who have booked holidays to Cyprus

cyprus100 wrote:

Nothing much has changed - except we're getting reports from shops that some of their local suppliers are asking for cash payments for restocking supplies now.
Some petrol stations are asking for cash too instead of card payments - but the multi's like Petrolina, Esso etc are still accepting cards.
ATM withdrawals in Laiki bank were restricted to €200 per day on Thursday evening.

They've indicated that when the banks reopen there will be restrictions on cash withdrawals and movement of funds in general. That will be when the fun starts and reality will set in, I believe...

People are still carrying out their everyday lives with not much change other than making sure you have enough ready cash in your pocket which is something I never do. The only time I buy anything independently from my husband are top up cards for my phone and I buy them online as a rule. Hubby fills up my car for me with fuel and he does the shopping while I'm at work. So now, I will have to make sure I've always got at least €10 in my pocket for a SoEasy phone card just in case I can no longer buy one online.

Either way, we will know what's happening by Monday as that's supposed to be the deadline set by the ECB.

Russia have supposedly said they haven't yet fully ruled out an offer of help even though our Finance Minister apparently returned from Moscow on Friday morning without a "deal". It would be a way for Russia to get a foot in the door of Europe and we assume they would like our gas field so maybe they're holding back till the final hour?

I guess the Cyprus government will have to come up with some kind of plan by Monday night unless the ECB give them a bit more time, otherwise on Tuesday instead of paying the tax haircut all deposits might go .

I'm not sure why Russia would be interested in the gas at this point in time. Surely wells & pipelines need to be put in place and 9 or 10 billion invested to make it workable. Wouldn't it be the big boys that did all that like Shell and Exon ? I though it took 7 maybe 8 years to do that kind of thing.

If Cyprus can't raise 5 billion, to secure a 10 billion loan by Monday night, how are they going to find the billions needed to get the gas flowing, it doesn't seem logical.

Hopefully something will be sorted with the EU on Monday and banks will open on Tuesday, I guess there will be lots of capital controls put in place, like they did when this happened in Italy and Argentina.

I don't think the EU want Cyprus to fail, they just want them to take a bit of responsibility for their debts, perhaps they will relax the terms.

Doe

Comment to Sanji though, we do not pay 20% a year on the balance of our savings here, we pay 20% on the interest,

My apologies for not saying 20% on interest and I also should have added if you're a taxpayer.

Give a man a gun and he can rob a bank - Give a man a bank and he can rob the world.
Sanji

Oh and don't forget QE as practiced by the Bank of England is also theft on a massive scale.