‘30% haircut for the Bank of Cyprus’

Published on 25 March 2013 at 10:02


At dawn on Monday, Cyprus and the troika of international backers (EU, ECB, IMF) reached agreement on a €10bn bailout plan, which should prevent the bankruptcy of the island and its exit from the eurozone.
The plan notably includes measures to impose levies on shares, bonds and bank deposits on the island – which should net the state €4.2bn – and the restructuring of the Cyrpiot banking sector. Deposits of more than €100,000 with the Bank of Cyprus, the country’s leading bank which has large numbers of Russian depositors, will be subject to a haircut of 30 per cent. Laiki Bank, which is the island’s second largest financial institution, will be closed down. “Banks are set to reopen on Tuesday, however, withdrawal limits will be imposed, so as to avoid a bank run,” explains the newspaper.
The new plan will not be subject to a vote by the Cypriot parliament. However, it will have to be approved by the parliaments of several Eurozone countries, including Germany.

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic