Bank of Cyprus Depositors Lose 47.5% of Savings Over 100,000 Euros
July 29th, 2013Via: AP:
Depositors at bailed-out Cyprus’ largest bank will lose 47.5 percent of their savings exceeding 100,000 euros ($132,000), the government said Monday.
The figure comes four months after Cyprus agreed on a 23 billion-euro ($30.5 billion) rescue package with its euro partners and the International Monetary Fund. In exchange for a 10 billion euro loan, deposits worth more than the insured limit of 100,000 euros at the Bank of Cyprus and smaller lender Laiki were raided in a so-called bail-in to prop up the country’s teetering banking sector.
The savings raid prompted Cypriot authorities to impose restrictions on money withdrawals and transfers for all banks to head off a run. Christopher Pissarides, the Nobel laureate who heads the government’s economic advisory body, forecast Monday that the bank controls could be in place for another two years.
