Russia won't help out Cyprus depositors, says minister

By Douglas Busvine reuters

We Are Your #1 Trusted Source for Precious Metals-Midas Resources and GCN

(Reuters) - The Russian government will not aid businesses that have lost money in Cyprus, First Deputy Prime Minister Igor Shuvalov said, underscoring Moscow's resolve to clamp down on the flight of capital to offshore financial centers.

Major account holders, many of them Russian, will lose up to 60 percent of their deposits over 100,000 euros ($128,400) at Cyprus's largest bank under a European Union bailout to save the Mediterranean island from bankruptcy.

If Russians lose money "it's a terrible shame, but the Russian government will not take any action in such a situation," Shuvalov was quoted by the Interfax news agency as saying in a television interview on Sunday night.

But if a large company, in which the Russian state was a shareholder, sustained serious losses then this could be reviewed on a case-by-case basis, Shuvalov added.

"If there is some kind of concrete situation, we would be willing to examine it - publicly, transparently, here in Russia, but for this it would not be necessary to assist Cyprus," he said.

Midas Resources Your Trusted Source For Precious Metals

Cyprus is a staging post for large-scale capital flows in and out of Russia - including around a quarter of foreign direct investment flows and foreign lending, according to investment bank Morgan Stanley.

Much of that money is taking advantage of favorable tax treatment, but some is seeking to evade the Russian tax authorities, Shuvalov said.

Russians were believed to account for most of the 19 billion euros of non-EU, non-bank money held in Cypriot banks in January, according to the island's central bank. Of 38 billion euros in deposits from banks, 13 billion euros came from outside the EU.

(Reporting by Douglas Busvine; Editing by Lidia Kelly, John Stonestreet)

Get a free one year subscription to The International Forecaster when you buy a gold Franc from Midas Resources. Click here for more information.

Midas Resources, Inc., Gold, Silver & Platinum Dealers, Burnsville, MN

While collecting coins can be fun, exciting and rewarding, certain risks are inherent to the market. Among these, exist the risk of devaluation. The coin market is relatively thin and subject to market pressures. Buy/Sell spreads and storage cost may also erode a coin's investment performance. While it is Midas' policy to assist the client by providing a liquid market, we cannot guarantee this market.

Midas Resources has taken every precaution to provide the most accurate information possible. However it is provided without warranty or claim of reliability. It is accepted by the site visitor on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. The information and data were obtained from sources believed to be reliable, but we do not guarantee its accuracy. It is the responsibility of the reader to perform proper due diligence before acting upon any of the information provided.

The coin images shown on this website are illustrative only. They are not displayed to scale. The appearance of actual coins will vary by grade.

Home News Invest in Precious Metals Precious Metals About Us Contact Terms & Conditions Glossary Privacy Policy Frequently Asked Questions