So much for bail ins. This is the result of a flat out EU robbery where the money stolen and simply pocketed instead of being re-invested back into the economy and the debt not retired. Good luck Cyprus the EU is preparing you for the next hit.
Unless you are part of the inner circle of President Anastassiades you will not know when the hit will come, so keep informed and be vigilant.
Far be it for us to comment that anything like “fundamentals” matters anymore, or that, blasphemy, bad news is anything but good news, however what the Central Bank of Cyprus revealed today is a little troubling to say the least: as of the most recent, June, data, the total percentage of non-performing loans in the Cypriot banking system just rose to a mind-blowing 45%, up from 44.3% in May, and nearly double the 23.6% which was reported at March 2013 when the local banking system cratered, leading to the first European forced “bail-in” of (mostly Russian) depositors.
In other words, nearly one of every two loans in Cyprus is now in default or near-default.
One wonders if, when peeling all the rhetoric and obfuscation, Europe’s very own NPLs, which several years ago were estimated to be in the trillions of euros, is higher, lower, or just about the same as Cyprus.
- Country gets into serious financial trouble;
- Official government denials;
- Surprise bank holiday/capital controls; and