Eurozone crisis: Cypriot depositors feel brunt of bailout
Bank of Cyprus savers will see at least 37.5% of funds over €100,000 turned into shares.
NICOSIA:
Big savers in Cyprus’s largest bank face losses of up to 60%, far greater than originally feared under the island’s controversial European Union-led bailout plan, officials said on Saturday. Officials said Bank of Cyprus savers will see at least 37.5% of funds over €100,000 turned into shares, but a further 22.5% will be held until authorities know they can satisfy the terms of the bailout. Cyprus only qualifies for the $13 billion-bailout, if it can raise a further $5.8 billion by itself, which it hopes to do through these measures. Lawmakers were meanwhile investigating a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by the island’s three biggest banks, two of them at the heart of the financial meltdown. Lawmakers from the ruling party said that the money, which will not be taxed, will be “placed in a time deposit for about six months to prevent people drawing all their money out”.
Published in The Express Tribune, March 31st, 2013.
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Big savers in Cyprus’s largest bank face losses of up to 60%, far greater than originally feared under the island’s controversial European Union-led bailout plan, officials said on Saturday. Officials said Bank of Cyprus savers will see at least 37.5% of funds over €100,000 turned into shares, but a further 22.5% will be held until authorities know they can satisfy the terms of the bailout. Cyprus only qualifies for the $13 billion-bailout, if it can raise a further $5.8 billion by itself, which it hopes to do through these measures. Lawmakers were meanwhile investigating a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by the island’s three biggest banks, two of them at the heart of the financial meltdown. Lawmakers from the ruling party said that the money, which will not be taxed, will be “placed in a time deposit for about six months to prevent people drawing all their money out”.
Published in The Express Tribune, March 31st, 2013.
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