March 29, 2013 / 7:26 PM / 5 years ago

Big depositors in Bank of Cyprus to get 37.5 percent equity: source

NICOSIA (Reuters) - Big depositors in Cypriot lender Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros, a source with direct knowledge of the matter said on Friday.

The rest of their big deposits may never be paid back. About 22.5 percent of deposits over 100,000 euros will attract no interest. The remaining 40 percent will continue to attract interest, but will not be repaid unless the bank does well.

Conditions of the conversion of deposits into equity, a pre-requisite for Cyprus receiving 10 billion euros in bailout funds from the European Union and the International Monetary Fund, were expected to be announced by authorities on Saturday.

Cypriot authorities have already announced Cyprus Popular Bank, will be wound down, with its assets transferred to Bank of Cyprus, the island’s largest bank.

Those with deposits under 100,000 euros will continue to be protected under the state’s deposit guarantee.

Reporting By Michele Kambas; Editing by Pravin Char

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