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Bank of Cyprus 'haircut' for big depositors detailed | Bank of Cyprus 'haircut' for big depositors detailed |
(35 minutes later) | |
Bank of Cyprus depositors with more than 100,000 euros (£84,300; $128,200) could lose up to 60% of their savings as part of an EU-IMF bailout restructuring move, officials say. | |
The central bank said 37.5% of holdings over 100,000 euros would become shares. | |
Up to 22.5% will go into a fund attracting no interest and may be subject to further write-offs. | |
The other 40% will attract interest - but this will not be paid unless the bank performs well. | |
Cypriot officials have also said that big depositors at Laiki - the country's second largest bank - could face an even tougher "haircut". However, no details have been released. | |
The officials say that Laiki will eventually be absorbed into the Bank of Cyprus. | |
Cyprus needs to raise 5.8bn euros to qualify for the bailout, and has become the first eurozone member country to bring in capital controls to prevent a torrent of money leaving the island and credit institutions collapsing. | |
On Thursday, banks in Cyprus opened for the first time in nearly two weeks. Queues formed of people trying to access their money, but the mood was generally calm. | |
By Friday, banks had returned to their normal working hours and there were no longer reports of big queues. |