Coming to a country near you?
If you're going to hide money overseas, you should at least do so in a country that's stable enough not to pull
a stunt like this.
Cyprus and its international lenders have agreed to convert 47.5
percent of deposits exceeding 100,000 euros in Bank of Cyprus to equity
to recapitalize it, banking sources said on Sunday.
Under a programme agreed between Cyprus and lenders in March, large
depositors in Bank of Cyprus were earmarked to pay for the
recapitalisation of the bank. Authorities initially converted 37.5
percent of deposits exceeding 100,000 euros into equity, and held an
additional 22.5 percent as a buffer in the event of further needs.
"There was an agreement concluding at a final figure of 47.5 percent
this morning," a source close to consultations told Reuters.
I doubt anyone is ever going to deposit money in Cyprus again. I wonder if the lenders would behave the same way with respect to Spain or England.... You see, this bailout was actually imposed on them by the
European Union's finance ministers.
According to a recent blog by Paul Krugman, the decision imposed by EU finance ministers to force depositors in Cyprus to take a loss, in order to help fund an International Monetary Fund and euro zone bailout, on their deposits may potentially cause a bank run
in other EU countries. Depositors in Spain and Italy and elsewhere may
become concerned that they will also lose their funds and withdraw ahead
of any such impositions. Other economists at leading banks, including
Morgan Stanley and Citigroup, have voiced similar concerns.
Ouch.
Labels: Cyprus, European Union, financial crisis, International Monetary Fund
'East Jerusalem' hospitals on verge of collapse: 'Palestinian Authority' hasn't paid its bills
More than thirty years ago, during the euphoria following Camp David, I traveled with my Grandmother a"h (May she rest in peace) to Egypt. My grandmother refused to drink (bottled) water, and as a result she dehydrated in Luxor on a day when it was 50 degrees Celsius outside... in March. There were a group of American nurses who were doing a rotation in a hospital in Riyadh who were part of our group, and they told me "whatever you do, do not let your grandmother be hospitalized in Egypt or in any other Arab country."
The gold standard for hospitals in this region is Israel. Thousands of 'Palestinians' and other Arabs are treated at Israel's hospitals - the 'Palestinians' rarely pay.
'East' Jerusalem is a distant second. The 'Palestinians' rarely pay there either. Now, the 'East Jerusalem' hospitals are
going broke as a result of the 'Palestinian Authority's non-payment.
Saddled with seemingly insurmountable debt and lacking a long-term
solution, Tawfiq Nasser doesn't mince words. "People will die," he said,
solemnly, from his office at Augusta Victoria hospital in East
Jerusalem.
"The bottom line is that people will not be able to
access healthcare, especially the most disadvantaged: the poor, women,
children, and people from Gaza," Nasser, CEO of Augusta Victoria
hospital, and Director of the East Jerusalem hospital network (EJHN),
said.
East Jerusalem hospitals are currently facing the most
severe financial crisis in their history. As a result of unpaid debt
accrued from the Palestinian Authority (PA), the six specialised
healthcare centres that comprise the EJHN are currently operating with a
financial shortfall of more than 57 million NIS ($14.9m).
Many
hospitals are now considering cutting down on staff, or limiting the
amount of patients they admit. Some are running out of medicines, while
others haven't paid surgeons their full salaries in months. Most don't
have the cash flow needed to purchase expensive equipment and tools.
"When
the Palestinian Authority is in trouble, we have no means of
sustenance. Of course, then it's the people who suffer," said Nasser,
explaining that at Augusta Victoria hospital alone, the PA is behind on
about 42 million NIS ($11m) in debt payments. "We could be looking at a
complete collapse scenario."
Unfortunately, for the 'Palestinian Authority,' weapons to destroy Israel and money for its leaders' Swiss bank accounts are a much higher priority than giving proper medical care to their 'people.' It is far more likely that the 'international community' will come in and bail out the 'Palestinian Authority' while the 'Palestinians' continue to choose guns exclusively over butter... guns and graft.
What could go wrong?
Labels: East Jerusalem, financial crisis, Palestinian Authority corruption, Palestinian Authority donors
YES!!! Hamas going broke too!
As
'moderate' '
Palestinian' President
Mahmoud Abbas Abu Mazen arrives in Cairo for an emergency Arab League meeting to shnor (beg) for funds, it turns out that his peace partner in crime, Hamas, is
going broke too.
Hamas also seems to be facing a financial crisis and, like the Palestinian Authority, has not been able to pay full salaries to its civil servants in the Gaza Strip.
Hamas legislator Yahya Musa called on the Hamas government to “be frank with the people and tell them the truth about the financial situation.”
Musa expressed concern over the Hamas government’s failure to pay full salaries to its employees for the last few months.
“If there’s a financial crisis, then the government should say so,” Musa said. “And if there isn’t a crisis, the government should quickly pay full salaries to all its workers.”
Sources in the Gaza Strip said that because of the financial crisis, the Hamas government has in recent months paid only half salaries to its employees.
Ismail Mahfouz, a senior official with the Hamas-run Ministry of Finance, denied that his government was facing a financial crisis. He said that the delay in paying the salaries was due to lack of cash in the hands of the government.
Mahfouz promised that the Hamas government would pay all its debts to the civil servants by the end of the week.
Isn't a lack of cash the definition of a financial crisis? Maybe they should ask Barack Hussein Obama what to do - he seems to be
an expert (Hat Tip:
Memeorandum).
Maybe Hamas can borrow some money from China.
Maybe they can raise taxes.
They sure won't cut spending.
BWAHAHAHAHAHA!
Labels: Fatah, financial crisis, Hamas
