Mass exodus from Cyprus may result from EU savings grab

Published:  29 Mar at 6 PM
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Tagged: Australia, Cyprus, Euro
Whilst the Cypriot government struggles to prevent capital from fleeing the island, reports suggest they should be concentrating on the likelihood of a mass expat exodus.

Just days after the banking sector meltdown and the EU savings grab, prominent Cypriots living overseas are being deluged by messages from friends and family indicating plans to leave. The two most popular private schools on the island are reported to already have problems filling classes, and parents are withdrawing their children.

Major Nicosia companies are drawing in their horns and making employees redundant, and SMEs are closing down as they cannot pay suppliers or workers due to the capital controls. Australia is a favourite subject of conversation, particularly as the country is home to many Greek Cypriot communities.

Expats working in the financial sector are predicting a second crash when the Cyprus stock exchange finally reopens. The admittedly tiny market had already fallen to an all-time low over the past four years, with experts now suggesting a further 50 per cent fall on reopening, causing terminal damage to the island’s economy.

Prior to yesterday’s reopening of the island’s banks, observers reported a convoy of heavily-guarded trucks said to be delivering tons of euros to cover residents’ demands. Although a run on the banks seems to have been averted by the fast introduction of capital controls, the disaster in Cyprus is certainly not over yet.
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