Sunday, February 7, 2010

I think we all have seen this movie before , This time I hope some of you dont close your eyes

Super-wealthy investors move billions out of Greece

Investors withdraw up to €10bn from Greece as government prepares tax crackdown to cut down deficit
Sunday 7 February 2010
A staggering €8bn-€10bn (£7bn-£8.7bn) may have been taken out ofGreece by private investors since it became engulfed by economic turmoil in November.
"In the last four to six weeks a lot of money has been moved abroad; I've heard extraordinary figures," analyst, Kostas Panagopoulos said.
"People are moving funds either because they don't trust our banking system, want to avoid what they fear will be taxes on deposits or are simply anxious about the future of our economy."
Traditionally, the country's super-rich, not least ship owners and mercantile elite, have favoured the Swiss bank and off-shore account. But now huge sums are also being spirited away to banks in Cyprus. "Very big transactions are going through Cypriot banks," added Pana­gopoulos. "Greeks feel that Cyprus is not only close, but safe."
While a fifth of the population lives beneath the poverty line, some 20% of Greeks are believed to earn more than €100,000 annually – even if, according to income tax records, 90% declare salaries of less than €30,000 a year.
"Greece has a lot of rich people who are not being taxed properly because there is so much tax evasion," finance minister Giorgos Papaconstantinou, told the Observer. "If you look at the actual numbers, you will see that the number of people declaring over €100,000 a year is roughly 15,000," he said. "I don't think that there is anyone in this country who believes there are only 15,000 Greeks earning more than €100,000 a year."

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