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Expatriate Health Insurance News: Expats worry as Cyprus' banking crisis deepens

Expatriates living in Cyprus are left wondering what the future holds for their savings as the banking crisis on the island continues to worsen.

It is yet unknown how much of the deposits they hold within Cyprus' banks will be taken despite reassurances from these institutions.

The Cyprus Popular Bank has set a guarantee that deposits up to the amount of £85,000 will be safe, but many expats have much more than this in their accounts, reports the Express.

A major factor in moving to Cyprus for many Brits in the first place had been the high interest rates, leading to entire life savings being held with the bank.

Now they are facing the fact that anywhere between 40 per cent and 100 per cent of the sums above the €100,000 limit could be taken away.

They have no means of redress as expats as the banks in Cyprus are not covered by the laws that protect customers of UK banks.

New frustrations have recently come to light as it has been claimed that many of the Russian oligarchs, investors and politicians with money in the island managed to withdraw it ahead of the tax raid announcement.

It is believed that as much as £12 billion may have been taken from Russian bank accounts when information was leaked that emergency measures were to be brought in.

Jonathan Davis, a wealth management expert, told the news provider: "We know hundreds transferred deposits out of Cyprus in the weeks before and that seems pretty coincidental, doesn't it?

"The tip could have come from the bank, government or from the EU in Brussels, but certainly a lot of people knew."

He went on to say that Cyprus' economy had always been unsustainable and those who reaped the rewards of high interest rates in the past will now have to pay the price.

"I'm afraid many bought into it hook, line and sinker. I have great sympathy but at the same time you can't expect an economy based on false assumptions to last forever," Mr Davis concluded.

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