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The Real Criminals are out - Cyprus Economy
21 April 2018
The Cyprus economy is at the state that it is, due (mostly) to the Bail In, that happened (uniquely) in Cyprus the year 2013. At that time the Government urged the House to approve a taxation on deposits by 6%-9% but the MPs (all of them including the MPs of the Governmental party who abstained) said No and we ended up with the 90% haircut and the disaster that followed and which it is still with us.
The same people who voted the Heroic No, appear till today in the various public media programs and daily in the TV to tell us how correct they were, with no remorse and any apology to the public.
As if this was not enough one particular political party, for reasons of its own, over the recent presidential elections spread rumours that the Co-Op was going to collapse and they have even called this Office (Mr M.K.) to warn us to take our deposits out of the Co-Op. This warning was repeated twice in one day and others followed. We did take out some money but several of our clients withdrew all their deposits.
Now and in order to complete the crime against the economy we have some and in particular one (left wing) party shooting all sorts of warnings against the Co-Op. End result about €2 bil. deposits were withdrawn and at a time that the Government is trying to sell the Co-Op to interested investors (will there be any after this?). The Government had to place as a deposit €2.5 bil. in order to hold the Bank i.e. money that the rest of us must come up with. As a result of these and in addition the unions of the Co-Op “warned” that they will not accept redundancy and reduction of their prevailing benefits. These 2.500 employees do not understand that they will also contribute to the disaster of the Co-Op since firing of excess staff cost millions to get the Bank back into shape, but then, who cares dear readers about Cyprus other than each one for its own.
The various statements made by the E.U. regarding privatization of public authorities and the overspending by the Government just after we got our head slightly above the drowning level, has encourage all sorts of unions to ask for more and more (see teachers, doctors, civil servants and others).
So at this point of time some serious depositors in all banks are turning their interest towards real estate investment, others take their money abroad and others keep their money at home in safes etc. We seem that we think that we are alone in this world and we ignore that whatever we do here, is monitored by others especially foreign investors.
Regarding real estate investment this is good on the one hand, but on the other how long will this last? However we note that we seem to be lucky in the sense that tourist numbers are increasing, real estate sales for passports is doing well and added income is coming from the privatization of the ports and the airports.
Yet the left wing parties are all against the privatization. Let’s now come to the public health insurance project which even now some political parties object and quite rightly the ex-minister of Health Mr Pamborides announced that there are Judas who fight the project. There is a particular small party leader, who should have been in jail for selling medical staff but not only he was never accused, but on top of this he has the audacity to claim all sorts of excuses and how correct he is.
If more people (Cypriots) objected to the goings on we would have been a much better country, but then the real criminals are out and about, our party leaders of a sort are there and we seem to be returning to our old bad habits.
The Government is trying to curb uncontrolled passports issue for foreigners yet just last week a real estate agent more or less guarantees in his adds that it can secure a passport within 180 days. The passports issue is not unique for Cyprus mind you. The U.K. announced €2.0 mil. investments will secure a U.K. passport, but then this is done on the quite, whereas other countries such as Croatia, Spain, Portugal etc offer the same incentive.
We need tough measures against the political criminals and as W. Churchill said “democracy is not the best system but we have to adopt it until we find a better one”.