Bank of Cyprus Executes Depositor bail-in By Carolyn Bewley

Posted on Monday, 29th April 2013 @ 08:41 PM by Text Size A | A | A

Spread the love

Savers in the Bank of Cyprus took a hit on Sunday as 37.5pc of their uninsured deposits were converted to equity as part of the island’s €10bn (£8.4bn) rescue deal.

The so-called ‘bail-in’ forces savers to foot the bill for the recapitalisation of Cyprus’ biggest bank, after it was hit by massive losses from its exposure to debt-crippled Greece.

Bank of Cyprus said it had converted 37.5pc of deposits exceeding €100,000 into “class A” shares, with an additional 22.5pc held as a buffer for possible conversion in the future.

Another 30pc would be temporarily frozen and held as deposits, the bank said.

The bail-in is part of attempts by Cyprus to find €13bn – a figure nearly double the island’s original bill – to shore up its economy. Other measures include a possible sell-off of the nation’s gold reserves.

The European Union and the International Monetary Fund are providing a further €10bn to the island, one of the eurozone’s smallest economies.

Read More…

Related News On HuffPo Club:

  • Last Call to be the World Leader in Outer Space. by Daniel Bruno

    Spread the love
    Spread the loveLast Call to be World Leader First posted: 03/18/2010 at Huffpo “Where is that moon, that leads to your soul?” – Aromabar     Legend has it that Kaguya descended from a race…

  • Electoral Science: The Winner of the 2016 Election Will be a Republican

    Spread the love
    Spread the loveOriginally published at Washington’s Blog in April, 2016   by Daniel Bruno   Electoral Science: The Winner of the 2016 Election Will be a Republican I was the first person in the world…

  • Report from Rio

    Spread the love
    Spread the loveReport from Rio Daniel “No Passport” Bruno, reporting from Rio de Janeiro. Daniel is from Manhattan, is an author, inventor, specialist in 9/11 studies, and the interview host at www.hpub.org which publishes over…

  • The New Common Sense. by Daniel Bruno

    Spread the love
    Spread the love     Americans need to retire the two party system. Congressional approval ratings hover around 8% yet most members are re-elected over and over again. The old definitions of liberal and conservative,…

Disqus Comments

Specify a Disqus shortname at Social Comments options page in admin panel

Facebook Comments

G+ Comments

Default Comments

 
  • Hpub asks

    • Sorry, there are no polls available at the moment.