Cyprus set to seize personal savings…

The euro dived and shares suffered sharp losses after a controversial bailout package for Cyprus threatened to trigger fresh turmoil in the eurozone.

Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout, prompting panic across the island as people rushed to cash machines to withdraw their savings.

That caused traders to dump shares across Europe, on fears it sets a dangerous precedent that could trigger bank runs in other eurozone countries.

Mohamed El-Erian, the chief executive of Pimco, the world’s largest bond investor, said: “In Europe, [the Cyprus bailout] could well undermine the recent tranquil behaviour of depositors and creditors in other vulnerable European economies – in particular Greece, Italy, Portugal and Spain.”

The euro slid to $1.2888 in early trade, its lowest point since December. One euro is now worth 86p. On the

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2013-03-18 09:07:34

Source: http://gibiru.com/index.php/uncensored-news/78-news/32329-cyprus-set-to-seize-personal-savings