Cyprus punished heavily in EU bailout deal

We knew the terms of the EU bailout deal for Cyprus would be punishing because they went to the Russians first but what has been agreed overnight is worse than anyone would have imagined.

Accounts held with the Popular Bank of Cyprus (Laiki) with deposits over €100k will be confiscated and used to pay the bank's debts and what is left will be moved to the Bank of Cyprus.  Laiki will then be closed down and its toxic assets will be transferred to a "bad bank".  Savings over €100k in Bank of Cyprus will also be plundered by an unspecified amount.  Bond holders in Laiki will be "wiped out" according to the Dutch Finance Minister, Jeroen Dijsselbloem.

As well as the legalised theft of peoples' savings Cyprus will be subjected to a destructive and degrading EU austerity programme.  The Cypriot economy hasn't just been wounded, it's been comprehensively destroyed and all because they went to Russia for money rather than subject themselves to EU austerity.

Nigel Farage has already warned people to take their money out of Spanish banks because he predicts the collapse of the Spanish banking system and now the EU has shown that it is prepared to sanction the theft of ordinary peoples' savings you would be foolish not to follow his advice.  The whole banking system is based on trust and that trust has been fatally undermined not just in Cyprus but the whole €urozone.  The "save the €uro at all costs" mantra really does mean at all costs, even if it means stealing citizens' savings.