F'instance what if............

[pato]

The Cyprus situation hit Portugal, is that possible?

[EMM]

Of course it is possible but very very very unlikely.
Anyone who has any concerns should just keep the minimum to meet their bills in their PT account.
Assuming that you do not already do this.

[e-richard]

The Cyprus situation hasn't even hit Cyprus!

Currently its been totally and overwhelmingly rejected.

[cereza]

The Cyprus situation hasn't even hit Cyprus!

Currently its been totally and overwhelmingly rejected.

True (for the moment) but it just shows how stupid these Euro politicians are to have even considered it so how can you be 100% sure they won't try it again in their attempts to keep the whole idealistic project going ?
It's all about confidence (or the lack of it) in banks and contagion. Cyprus has got to get a solution of some sort and they are asking the Russians for help but what does that say about the EU family?
This story isn't over yet and you know what happened in the UK when doubts rose about Northern Rock - people panic and they want their money. It doesn't take much to start a run on a bank in the current climate and that's why the bank in Cyprus are closed.
This is not over yet by a long way

[James Faro]

The Cyprus situation hit Portugal, is that possible?

Well, the Portuguese goverment have been quoted as stating they have no plans for introducing such a levy! That is different from saying they wont!

The Cypriot President and his cabinet have broken a taboo about arbitarily imposing a levy. While it has been watered down and the Cypriot parliament have rejected this policy, will be re-examined in the years to come by other countries in the EU; privately at least! This policy has been mooted for a long time within the EU but the mooting has been very muted! The reaction of the markets is one reason reason why!

Any government that introduces this policy is committing electoral suicide but a newly-elected government may do so hoping that come the next election the voters may forgive them!

The Cypriots have offered bonds and shares to compensate for the levy they originally intended but they are worthless at the present time and no way guaranteed to yield income.

[Jaylay]

Think the best answer is the old fashioned one, "do not keep all your eggs in one basket"

[pato]

The Cyprus situation hit Portugal, is that possible?

Well, the Portuguese goverment have been quoted as stating they have no plans for introducing such a levy! That is different from saying they wont!

The Cypriot President and his cabinet have broken a taboo about arbitarily imposing a levy. While it has been watered down and the Cypriot parliament have rejected this policy, will be re-examined in the years to come by other countries in the EU; privately at least! This policy has been mooted for a long time within the EU but the mooting has been very muted! The reaction of the markets is one reason reason why!

Any government that introduces this policy is committing electoral suicide but a newly-elected government may do so hoping that come the next election the voters may forgive them!

The Cypriots have offered bonds and shares to compensate for the levy they originally intended but they are worthless at the present time and no way guaranteed to yield income.

The EU don't accept "no" do they, they didn't with Ireland and France.

[James Faro]

I have some Cypriot friends living in London/born here and they are incandescent with rage with what is going on in Cyprus. One of them had a property but if she decides to sell may get hit with that whopping 60% levy. She now has a no-win situation, Keep the property and see house prices fall or sell it and suffer a 60% theft from the government.

Some depositors are going to mount a legal challenge but that could take years and if the Cypriot government had deemed it a necessary finance law I really can't see it being overturned!