Cyprus has agreed a €10bn bailout deal that will force large losses on some big deposit holders but avoids a controversial levy on all bank accounts.
The deal, agreed in the early hours of the morning, will see depositors with over €100,000 in Cyprus' two largest banks hit with hefty losses. But in a key change to a plan announced last weekend, there will be no levy on deposits under €100,000. The new proposals centre on Cyprus' two largest banks, Laiki and Bank of Cyprus. The former will be closed, with its €4.2bn in deposits over €100,000 placed in a 'bad bank' and potentially wiped out entirely. Junior and senior Laiki bondholders will also be wiped out, in a eurozone bailout first. Smaller deposits at Laiki will be transferred ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
