Was supposed to happen today - now tomorrow (I bank holiday I might add). Seems they may be realizing they may have underestimated the reaction.
-Greek banks on Cyprus are not affected by the "tax" (theft)
-UK diplomats/military on Cyprus who are affected have been told by UK gov't they would be made whole
-Cyprus bank branch deposits in UK will not be subject to the "tax" (theft)'
If the parliament doesn't approve this, and it is a minority governement, the EU says no money for the two largest banks and they have said they would fail. Government would most likely fall too if vote fails. If it passes, government most likely on a plane - running like hell.
Fine the banks fail, Cyprus goes the way of Iceland (not a bad option really), and any counter party risk is offset by the ECB. See, no problem.
Italians can see also. Screw the bailout, let the banks fail, it's ECB problem not ours. Contagion affect will be in people's perception of their options. Even Greece will be looking at this and say to themselves, why are we letting the ECB dictate our government to us? Bulls can bash Cyprus as being nothing but bird shyt on the windshield all they want - and it is - but that piece of bird shyt can cause a lot of problems if it interferes with the way you were seeing things before.
Bank deposit under 100K Euros in Cypress were INSURED....as in Deposit Insurance. That "illusion of your money is safe" has now been kicked in the nuts.
Meanwhile, all the bondholders of the banks, aren't going to lose a single penny - no haircut.
The government was elected on Feb 24 with the promise that they would restart bailout talks and protect the savings of the people of Cyprus. Another "illusion of trust" kicked in the nuts.
No one looking in on Cyprus will ever ever believe a word from the ECB, IMF, any european government again about how their money is "guaranteed" and safe. IF they remove the tax under the 100K thrreshold, they might be able to save face and it might fly because of the russion money you refer to - but that's it.....Even then there is damage done...