A friend sent me an article from a fairly credible German news source about capital flight in Cyprus before the bank holiday. This is the first I have heard of pre-bank holiday capital flight by insiders. And given this is a German news source, I am going to be sceptical until I see further credible verification. Nonetheless, the gist here is that 4.5bn euros in funds were alleged to have been shifted out of Cyprus just prior to the announcement of the country's bank holiday. The article alleges that government officials were prominent amongst those sending their money to safety outside of Cyprus.
Here's a rough translation:
At the last minute: Cypriot politicians plundered their bank accounts
In the week prior to the EU decision for a compulsory levy in Cyprus, almost 4.5 billion eur...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.