Cyprus is now considering looting public pension funds and levying a 25% charge on accounts with the Bank of Cyprus over 100,000 euros to pay protection money to Eurozone banksters. Gosh, this will certainly end well.
Update: The levy could be as high as 70% at Laika Bank, where much Russian money is stored, like billions, much of it assumed by many to be of dubious origin.
Even with controls imposed, their banks will have huge runs when they finally open as depositors, especially foreign money seeking high Cyprus yields (and presumably lax money laundering enforcement), leave the country as fast as possible. Cypriots will similarly withdraw as much money as they can do. Would you keep money in a bank knowing the government might decide to impose heavy “taxes” on it? I didn’t think so.
Merkel has said any plan based on stealing pension money is unacceptable because of the social unrest that would follow. Even if Cyprus does manage a plan, their banks will still collapse and they will have also destroyed any trust and faith Cypriots have in their government.