Expatriates in Cyprus Face Misery as Bank Accounts and Pension Payments are Frozen

March 19, 2013 - PRLog -- Banks remain closed until Thursday.

An announcement that the Cyprus Government will impose a levy on bank accounts as part of a 10 Billion Euro EU bailout deal, has prompted turmoil and fear across the world. Bank runs ensued as news quickly spread of a tax on deposits. Major media reported savings and current accounts in Cyprus were frozen, including pension payments to British expats, ahead of a parliamentary vote delayed since Sunday till Tuesday.

Thomas Pascoe, from the Telegraph said “What is happening in Cyprus is disgraceful. The principle that there is no division between your private property and communal property which may be appropriated by the government whenever it sees fit is an outrageous one in any system other than Communism. The idea that a government which has chronically misspent may order the banks to close and deduct a sum of its choosing from a person's balance before allowing it to re-open is beyond parody.”

Phillip Inman, at The Guardian said “There was a route to avoid this debacle. The EU, after the financial crash, should have agreed to forgive much of the debts, not just in Cyprus, but also Ireland et al. The Germans, who are blocking debt forgiveness with the Finns, the Dutch and the Austrians, would have been repaid in full from economic growth over the past three years. Instead they face a prolonged depression and growing resentment from southern Europe towards their hardline policies.”

In wake of the crisis, speaking to Demetris Georgiades, the financial editor for the Politis newpaper in Cyrpus, Jane Dutton from AlJazeera's Inside Story report “The Cyprus Effect”, hinted that the island of Malta, may look a little more attractive for capital flight out of Cyprus.

The island of Malta, a Southern EU country, comprising of an archipelago in the center of the Mediterranean sea, could well be the perfect jurisdiction for capital flight from financial misery in Cyprus. The EU's smallest member state, Malta is emerging as one of the fastest growing international financial centers.

Quick Facts:

12th Soundest Banking Sector - World Economic Forum's Global Competitiveness Report 2011 - 2012 (142 countries reviewed)

15th position in Financial Market Development - World Economic Forum's Global Competitiveness Report 2011 - 2012 (142 countries reviewed)

1st in both Online Sophistication and Full Online Availability - European Commission's 2010 Benchmarking report on eGovernment Services

1st in the timely implementation of Internal Market rules into national law - Internal Market Scoreboard 2011

3rd place for overall quality of life and 1st place for best climate - International living 2011 (192 Countries Reviewed)

With an English speaking workforce and sound Government, Malta is a strategic crossroads between Europe, Africa and the Middles East. Backed up by best-in-class ICT infrastructure, a bilingual workforce, a nimble economy and a strong yet flexible regulatory body in the Malta Financial Services Authority, Malta is recognised on a global scale, as an attractive, low cost, tax-efficient base for businesses and consumers alike.

Success of Malta’s Financial Services Marks it as Premier QROPS Jurisdiction

A Qualifying Recognised Overseas Pension Scheme, or QROPS, is an overseas pension scheme that meets certain requirements set by HM Revenue and Customs (HMRC). A QROPS can receive the transfer of UK Pension Benefits without incurring an unauthorised payment and scheme sanction charge.

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