Mar. 28 - Cyprus’ capital controls could spawn bribery, sap confidence, crush the economy and spread contagion, according to Reuters Hugo Dixon.
Cypress capital controls and -- shambles that it's foreign bribery sapped confidence -- economy has spread contagion. And what's the real costs of moving to a -- in -- -- world Chris -- is editor of roses previews joins. -- that that's kicked off with this this this on the shambles -- disaster written by Hugo Dixon -- -- that -- -- -- Does that already believe these kind of controls gonna be -- be lifted in what three or four days into work. Well within striking inconsistencies if you look at what's being said by the various policies about the nature of these control site. On the one hand whispers but these they lost the week. And yet some of the controls. Related to periods of a month. On this for as well as provisions for the controls being extended. Says. I think and it hit me. The -- skeptical observer is gonna look at some guy. Maine. Me then not quite say it and -- here. The Cypriot authorities were. Was it just. As you know looks to Iceland elects to Argentina. While Iceland still going on of course Argentina is about yeah yeah rice. -- and then he goes on and it some aspect to Hugo about loss weak arm to. Criticize the C -- -- lack of action. From. Why didn't it step up to this lender of last resort. In -- The group the one thing that. Critics of capitals saying it is. Barry Holland to withdraw -- count controls what's it it -- suspicion that these securities could be. In place for quite some time and also their Wallace an alternative I mean what you could have gone is the thing that the banks recapitalize. OK if there's the funding problems caused by are wrong calls by the supposed to think the money out. Let's happy CP stack -- and found them and place of the deposit system. Back it up and I cannot tell you if you wrote an article -- Have we not seeing rules than previously influences and in this in this case sorely that would have been the lesser evil. These to be stepping into the path animals was who. Relaxing -- rule rules. To keep the that the banks function without its controls you would hope we had some sort of virtuous circle the virus to people have confidence in the banks. Bringing those that may be put money. It was speaking of the ECB let's move on to this new element he's ECB will have to -- new era -- Europe banks. -- did decide did that does UniCredit says I'm gonna have to am I gonna have to cough up makes. Say for banks but it's that it's the smaller weaker banks Aaliyah hit -- Yeah I mean that we knew we were moving through world. One guy. Why if for panic fails you to basically carried through the councils for certain knicks who behead them junior bondholders and hastily. Even the senior bondholders and potentially even. The the uninsured deposits of about both still some -- off from there was a period of it that people would have a period of adjustment in getting that. And now find during the Cyprus crisis that's been made explicit albeit the comment was attracted by the editor. Had it's the ministers that this could actually be the mobile. Now if you if you buster now if you have Apocalypse Now it's all schools potential problems for the week offense with that investors are gonna think -- key. Right now we are potentially on the hook if this I -- -- trouble and not. That puts pressure on them the funding costs go up. I'm -- little program is more work for the ECB have defect and hand have to be ready if if your post newsroom favorable world gonna have to be ready. -- -- -- -- -- -- -- -- -- -- -- -- There's some things -- the series at your watch our US show. Everyday talk buddies and 1630 GMT. IMAX a couple of sources.