Raid on Cypriot deposits shakes Europeans' faith in savings (9.9% theft by govt)
Reuters ^ | Sun Mar 17, 2013 5:01pm EDT | By Harry Papachristou and Sonya Dowsett
Posted on March 17, 2013 6:32:46 PM EDT by Red in Blue PA
(Reuters) - Europeans' faith in the safety of their savings has been shaken by a levy on Cypriot bank deposits to pay for a bailout, even though there was no sign of a rush to withdraw cash in Madrid or Dublin.
People told Reuters they were angered but unsurprised that politicians should dip into citizens' deposits. And as bankers expressed concern the proposed terms of Cyprus's bailout could unnerve savers elsewhere, some leftist leaders voiced outrage.
Euro zone finance ministers want Cypriots to pay up to 9.9 percent of their deposits in return for a 10 billion euro ($13 billion) aid package. If approved by the island's parliament on Monday, it will be the first time savers have had to foot part of the bill for a European bailout.
(Excerpt) Read more at reuters.com ...
