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Big Bank of Cyprus depositors to lose 30 percent: finance committee
March 25, 2013 / 8:47 AM / 5 years ago

Big Bank of Cyprus depositors to lose 30 percent: finance committee

NICOSIA (Reuters) - Depositors in Bank of Cyprus stand to lose 30 percent on their holdings over and above 100,000 euros, the chairman of the island’s parliamentary finance committee has said.

People queue up to make a transaction at an ATM outside a branch of Bank of Cyprus in Nicosia March 21, 2013. REUTERS/Yorgos Karahalis

“I haven’t heard a formal announcement about the haircut, but this is the figure I heard,” Nicholas Papadopoulos told Irish radio.

The depositors will be compensated with equity in the bank, under a deal agreed with the EU in the early hours of Monday morning to recapitalize Cyprus’ largest bank.

The haircut for large depositors in the island’s second biggest bank, Cyprus Popular Bank, also known as Laiki, has not yet been disclosed but is expected to be higher and will raise 4.2 billion euros.

Those with deposits under 100,000 euros in both banks will continue to enjoy the protection of the state’s deposit guarantee, after an earlier proposal to hit them with a 6.75 percent tax provoked outrage.

Reporting By Laura Noonan; Editing by John Stonestreet

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