Since Lehman Brothers failure in 2008, there was kind of general feeling that governments would not allow any further banking failures that would either ruin common depositors or trigger a new systemic banking crisis. In the Eurozone, not all governments have the financial credit to abide by this pledge, which makes bailing out banks a difficult exercise.
1€ at the bank in Cyprus worth less than 1€ in the pocket
In the case of the Cyprus bailout, the solution of levying a tax on deposits was felt by Cypriots as a breach of confidence, since the E.U. promised to fully guarantee deposits below 100,000 euros. An alternative scheme to apply the tax only above that threshold would be seen at targeting specifically Russian money : Cyprus is the main financial center used by Russian businessmen to invest abroad and reinvest their money in Russia.
It is not clear how the situation will be resolved next week. But when the dust settles down, we can expect some of the leading financial centers to send welcoming signals to Russian businessmen : LuxembourgForFinance, TheCityUK, Paris Europlace will be on the line – and the Asians, of course: Hong-Kong and Singapore.
Some of the companies based in Cyprus to whose directors they will want to talk:
Alfa Capital Holdings (Cyprus) Limited, Apg Polyplastic Group Limited, Brokercreditservice (Cyprus) Limited, Celico Productions Co Limited, Crudex Cy Enterprises Limited, Eurosibenergo Plc, Globaltrans Investment Plc, Itera Pet Limited, Lada International Limited, Lorell Limited, Lukoil Cyprus Limited, Ogata Property Limited, Ojsc Promsvyazbank, Prestigio Plaza Limited, Rai Consultants Public Limited, Reserve Invest (Cyprus) Limited, Retal Industries Limited, S.L. Capital Services Limited, Tdam (Cyprus) Limited, Unicom Management Services (Cyprus) Limited, Uniservices Limited, UralChem Holding P.L.C., Urals Energy Public Co. Ltd., Valars Holding Limited, Vision International People Group Public Ltd., Xxi Century Investments Public Limited, …
Further reading : Indian, Chinese, Russian and Japanese directors in European Big Business – an onomastics view [2/2]
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