What Cyprus Teaches Us About Safe Deposit Boxes

Between 2012 and 2013, the Republic of Cyprus experienced a financial crisis that set a troublesome precedence not only for other countries in Europe but in other parts of the world as well. Today, we’ll take a look at what Cyprus teaches us about safe deposit boxes in the midst of bank bail-ins and an economic crisis.

The Cyprus Bank Bail-In At a Glance

On March 25, 2013, a €10 billion international bailout by the Eurogroup, European Commission, European Central Bank and International Monetary Fund (IMF) was announced as a solution to the economic turmoil the country is facing. In turn, Cyprus had to agree to close the Laiki Bank and impose a one-time bank deposit levy on all uninsured deposits there as well as 47.5 percent of uninsured deposits in the Bank of Cyprus.

This meant that depositors had to take losses. One day their savings were safe and sound in the bank and the next day, they were frozen out of their savings. The public was shortchanged, to say the least, all because the government and its banking system had accumulated too much debt. The worst part is it happened without a warning.

What It Means for The Rest of the World

The Cyprus Bail-In set a dangerous precedent for European countries and other parts of the world as well. It provided a proof-of-concept of sorts for other governments and for big financial institutions. If Cyprus can use depositors’ hard-earned money to get out of a rut, then other countries can replicate it and on an even bigger and ominous scale.

In fact in 2017, Greece, as a countermeasure to its failing banking system, had confiscated the contents of bank controlled safe deposit boxes as well as securities and wealth stored in private homes. Greeks could not withdraw the cash they left in safe deposit boxes as a result of the capital control the government has implemented.

Governments and financial institutions tend to take drastic measures during economic turmoil so there’s no telling when this same will happen in other parts of the world. Even Australia has a bank deposit bail-in law that can steal your savings in the event of a nationwide financial emergency.

A Smarter Option for Safe Deposit Boxes

With the knowledge of what Cyprus teaches us about safe deposit boxes, it’s important to know that there is a smarter option for your safe deposit boxes especially if you’re in Australia.

At Private Vaults Australia, we understand that the peace of mind that comes from knowing your valuables are safe is priceless. This is why we offer you an accessible, convenient, and highly secure storage solution for your assets.

Our private vault is equipped with state-of-the-art security systems. Only registered clients will be allowed access to the “back of house” where we have our Safety Deposit Boxes and other storage solutions. We also have layers of security ranging from Physical, and electronic consisting of digital Entry, Biometric scanners, your own person Key to access only your box and your personal internal lock on your boxes. All of this is overseen by a grade 1, state of the art 24/7 security monitoring with specific security zones to limit the access to only our approved clients.

What’s more, the nature of our services is outside the regulatory powers of the existing banking system. Unlike the banks and other financial institutions, we are a private facility where security and safety of your valuables are matched by absolute and total privacy. We do not obtain your personal financial information and legal documents so you can rest assured that you and the contents of your safety deposit box are safe from harm.

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