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vox kadavergehorsamkeit
Member since May 2012
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Sad Cyprus

- Goldmoney -

Sorry OTE, but it is my belief that your usually keen insight has missed the mark here.

My own sense of the matter is that it is up to the lender to decide what the RISKS are, to charge an appropriate amount of interest for taking that RISK and to accept things when the situation does not pan out. That is how all credit markets are supposed to operate. Were it not so, all loans would have the same nominal interest terms. Trying to bully others who were not a party to the loan to pay you back is not ethical. Heck, it seems down-right criminal to me.

As for the financial state of Germany, that is irrelevant. If they could not afford to write off the loan if it did not perform, they had no business lending the money in the first place.... Sorry, but the various bond holders, who were all too happy to accept their interest payments, must now accept that they made a poor decision and move on. Did not the 2 Cypriot banks now in trouble get in this spot because they made a poor decision to lend Greece money? They had to accept a write-down on those loans and move on. That is how things are supposed to work. If the Germans were fine with the Cypriots taking a loss on their Greek loans, why should it be any different this time?

Commented 4047 days ago

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Beginning of the headline :Pure theft. That’s the description many are giving to the weekend’s news from Cyprus, where bank depositors have had their accounts frozen, with a special 9.9% levy on deposits of over €100,000 and 6.7% on amounts below that. Interest is also being taxed at 20-25%, and the country is being forced by the IMF and EU to raise its 10% corporation tax rate. These measures are designed to raise €5.8 billion as a contribution to a €10bn bailout for the Cypriot government. Yet again, banks and the gov... Read More

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