how long do they think they can stop people withdrawing their money? they cant hang on to it forever
Quoting: Anonymous Coward 34765812 Sure they can. Capital controls can stay on place for a long time if another bailout in needed in the interim and those funds are hit with yet another tax while still being held, most will never see their money again.
"How long could capital controls last?
If you believe Mr Barnier, only a few days.
But as JP Morgan highlighted in a note on Monday, Iceland's unlimited guarantee on domestic deposits managed to stem deposit outflows in late-2008 because the government guaranteed deposits in its own currency, and foreign exchange controls prevented money moving abroad.
"On the other hand, Cyprus is slated to impose losses on deposits based in Cyprus, but not in Cypriot banks' branches abroad, in essence reflecting the fact that its deposit haircut is set to be implemented as a domestic wealth tax," said Nikolaos Panigirtzoglou.
"The IMF forecasts the Iceland's capital controls will not be removed until 2015, suggesting that any Cypriot capital controls could turn out to be quite extended."
[
link to www.telegraph.co.uk]