Canada not the new Cyprus?

Dear editor,
Clff Boldt sent an alarmist letter warning that, under legislation enacted in Ottawa, Canada could become another Cyprus.

Dear editor,

Recently, Clff Boldt sent an alarmist letter to the papers warning that, under legislation enacted in Ottawa, Canada could become another Cyprus.

Readers might remember that the government of Cyprus proposed to meet its international debt obligations by confiscating a percentage of all bank accounts. This plan had to be shelved under enormous public reaction.

Now Mr. Boldt is claiming that Harper has enacted changes to the Bank Act that could see the same thing happen here.

Mr. Boldt, through his previous letters to the editor, has revealed himself as no fan of the Conservative government. This is a position he is entitled to but he is not entitled to mislead the public in such an alarmist way.

The changes enacted allow the chartered banks to convert bonds they have sold into share equity to maintain solvency in emergency situations.

It has nothing to do with deposits in either chequing accounts or savings accounts. Such deposits under Canadian banking practices must be listed as liabilities on the banks’ books and cannot be treated as bank assets.

Furthermore, deposits are covered by federally backed deposit insurance up to a certain amount and if Mr. Boldt were correct that the legislation allowed the government to confiscate your deposits what would it gain?

It would have to return such monies under the insurance coverage.

Delbert Doll,

Courtenay

 

Just Posted

Bike helmets, tools donated to Santa’s Workshop

Cross Canada Cycle Touring Society and Canadian Tire embraced the season of giving

Annual labyrinth walk welcomes the festive celebration of lights season

Take a break from the commercial activity of the holiday season and… Continue reading

Strong winds to hit B.C.’s south coast

Western regions may see winds of up to 80 km/hr

Courtenay family looking for help after baby born two months premature

A GoFundMe page has been set up as a difficult pregnancy and a long stay in Victoria have left the family struggling to get by

VIDEO: Ex-NASA engineer pranks mail thieves with glitter bomb trap

Package thefts are common this time of year, but YouTuber Mark Rober used his engineering skills

Bear cubs try to take Vancouver Island woman’s Christmas cookies

Incident happened in the early-morning hours today, Dec. 18, in Nanaimo

FortisBC says you can return to normal gas use following pipeline fire

Utility says increased pipeline capacity, warmer weather have allowed supply to reach normal levels

CSIS collected info on peaceful groups, but only in pursuit of threats: watchdog

Security Intelligence Review Committee says fears unjustified after reviewing evidence, testimony

Canada ranks 16th on annual gender gap list

This is the second year Canada has placed 16th in the World Economic Forum’s list

VIDEO: Tornado rips through city west of Seattle

Reports indicate five to seven homes damaged in Port Orchard, Wash.

Trial date postponed for man charged with killing Abbotsford police officer

Oscar Arfmann’s trial pushed back from January to May 2019

Privacy watchdog says legal cannabis buyers should use cash, not credit

Some countries could bar entry to individuals if they know they have purchased cannabis

‘A start:’ Alberta critical of Ottawa’s $1.6B package for ailing energy sector

A further $150 million is to be used for clean growth and infrastructure projects

Most Read