EU bailout for Cyprus

[Janner]

Hi,

Interesting events in the Euro lately and I think it is safe to say that none of the so called 'experts' actually know what to do about it. Is the best way austerity or growth??

Anyway, I am wondering what the implications will be for cyprus if they ask for a bailout from the EU. Will the EU insist on cyprus opening its books to EU officials? I would like to think it would as surely the EU wouldn't lend without checking the detail. If this is the case then it will be clear to see that cypriot banks are cooking the books and that cypriot developers are not paying their loans.

I would also like to think that organisations like CPAG would be very vocal if cyprus did apply for a bailout.

If cyprus are forced to seek a bailout it could do us all a favour and accelerate the issue of whether 'we' were misled with out property purchases. The huge amount of information on this website and others detailing that cyprus has or hasn't broken the law by not telling purchasers about developer debt on the land etc may be dealt with faster if cyprus seek a bailout.

Maybe I am in cloud cuckoo land though........

Replies please.

[Pantheman]

Wishful thinking I'm afraid.

What the developers loans are is nothing to do with the government books.

Whats between a bank and its customers is nothing to do with the EU.

Ths property issues are totally unrelated, I would be surprised if we needed a bail out.

[Janner]

Hi Pantheman,

I understand that the cyprus government bailed out popular bank the other day. If they have to offer more money to prop up the banks then they may not be able to do it and may have to go to the ECB for a handout. If this happens then I assume then the EU powers to be would want to see their books. If there is suspicion that the banks are cooking the books (as is the case) then I would have thought the EU would like to know about it.

Are you saying that bailout money would be provided without the EU even checking the books? If this is the case then we are all doomed!

[Pantheman]

Hi Pantheman,

I understand that the cyprus government bailed out popular bank the other day. If they have to offer more money to prop up the banks then they may not be able to do it and may have to go to the ECB for a handout. If this happens then I assume then the EU powers to be would want to see their books. If there is suspicion that the banks are cooking the books (as is the case) then I would have thought the EU would like to know about it.

Are you saying that bailout money would be provided without the EU even checking the books? If this is the case then we are all doomed!

Janner,

the Cyprus government DID NOT bail out the popluar bank. It didn't give it any money, yet. They agreed to underwrite in investor monies placed in the bank.
If you have evidence of the banks 'cooking' their books share it here, or refrain from making propoganda accusations.

Any books that may be viewed by the EU would be those of the government not the banks - client relationships.

You should be more concerned with the british tax payer losing 2 billion pounds in northern rock, now thats a bail out.

[Janner]

Pantheman,

We can go back and forth all day long on this issue.

Yes, I understand that it wasn't a bailout but that the government promised to underwrite the bank if required. However, it is an indicator that problems are ahead in the banking sector in my opinion. As for the books. I find it hard to believe that the EU would not be looking very closely at the books.

However, I'm sure you know more about it than me and you are clearly in the camp that thinks Cyprus does not have anything to worry about.

Lets hope you're right!

[Pantheman]

Janner,

I didn't say that, I was responding and answering your post. You had made some assumptions and I disagreed. Tell me what country today does not have banking problems. We can cross each bridge as we come to it since they situation is very dynamic and subject to change hourly. All we can do is speculate and speculate wrongly. You were trying to create an atmosphere of danger and I was just trying to give you a different point of view.
Media and individual 'opinions' can kill a market, and create a bad situation by constantly down talking the circumstances. Much of the doom and gloom is created by 'us' and the media that just want stories.

let us be a little more positive and if the worst comes to the worst, we just have to find a way around it, after all there is not much we can do about it now, is there?

All the best

Pan

[Janner]

Pan,

I do not wish to fall out about it and I appreciate your comments.

Many countries do have banking problems. Agreed. But I cannot see how Cyprus can cope or continue in its current form. The property problem of not issuing title deeds at point of sale, misleading purchasers about debt on land, raising huge amounts of debt on land over and over again is an unsustainable system. The country is simply not modern and is not making enough of an effort to tackle the real issues. I am saying that I hope the EU would not lend to a system that is broken.

I do hope it can be fixed but the facts are the facts and no amount of positive spin can change the fact that thousands of people have been ripped off and the developer debt is a big problem for the banks. The other issue is that the title deeds fiasco is well and truly out there and Cyprus cannot dodge it forever nor the books that have no way in balancing due to developer debt.

All the best

[Pantheman]

With all due respect, but you have gone completely off topic. You have taken a bail out thread to complain about the property issues which are totally unrelated. Talk about spin.

In any case I will shut up now as there is no point in a disussion when you want to go off at a tangent and complain about title deeds.

Start another thread if you wish.

Bye and good luck