With the negative publicity and real risks being generated by the raid on savings in Cyprus, you would almost think that policy leaders would see the danger in even talking about more raids on savers.
|Minister Cristobal Montoro (right) |
seen in this photo with an American industrialist
- Photo from PBS.org
Not in Spain. Believe it or not, the Spanish government is planning a depositors levy that will take some 0.1% to 0.2% from the banks based on their total level of deposits. The difference appears to be that it will be the banks that have to pay the levy, rather than the money being taken from individual accounts. The new measures will take effect in a matter of weeks.
According to Treasury Minister Cristóbal Montoro, this levy will raise some 1.5 to 3 billion Euros. This will help “impose order in the Spanish banking system” says the Minister without explaining how this will help.
|We will only take this much - at least the first time! |
Photo by CBC.ca
QUESTION: Where will the banks get the 3 billion Euros to pay this new tax which will be based on deposits?
ANSWER: Depositors? Stand by for more fees and lower service levels in Spanish banks as the banks find a way to pay this new tax.
One thing is clear. If you are a saver and you have money, the highly indebted governments and banks will find a way of getting it.
This is economics for the rest of us. Savers beware everywhere!
(For more on what the Brits and the Americans are planning for their depositors, see http://tiny.cc/z4jcuw )
(For more on what is happening to Cyprus savers, see http://tinyurl.com/b2hqds6)