Cyprus, Troika Agree to Bail-in, Bank of Cyprus to See 40% Haircuts for Deposits Over €100,000, Deposits At Other Banks WILL BE WIPED OUT!
March 24, 2013 By
*Updated: In response, a bomb has just been detonated at the Limassol branch of the Bank of Cyprus
Multiple breaking reports indicate that in an early Monday meeting with Lagarde, Draghi, & Von Rompuy, Cyprus’ President Anastasiades has agreed to a Cypriot bank restructuring/ depositor haircut deal in exchange for €10 billion in emergency loans from the ECB.
The deal reportedly will avoid the necessity for any vote by the Greek Parliament, and is far, far, far worse for Cypriot citizens and depositors than the one the Cypriot legislature voted down on Thursday, as the ECB will reportedly be handing out 40% haircuts for depositors with over €100,000 on deposit in the Bank of Cyprus, and deposits over €100,000 at Cyprus Popular bank will be WIPED OUT!!!
Forget haircuts, the Cypriots have just been scalped alive by the ECB & IMF!
As Bloomberg reports, deposits over 100,000 at the Bank of Cyprus will see 40% haircuts, and deposits over the insured levels at other Cypriot banks will be WIPED OUT!:
As euro finance ministers milled around for a meeting that began more than six hours after the scheduled 6 p.m. start time, Anastasiades brokered the bargain with officials including European Union President Herman Van Rompuy, European Central Bank President Mario Draghi and International Monetary Fund Managing Director Christine Lagarde.
The agreement calls for Cyprus Popular Bank Pcl (CPB) to be shut down and split. The Bank of Cyprus Plc would take over the viable assets of the failed bank along with 9 billion euros in central bank-provided emergency liquidity aid, according to three EU officials who asked not to be named because talks are ongoing.
Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.