RUSSIA TODAY: Large depositors in the Bank of Cyprus will get back 37.5 percent of their money in shares instead of cash, the Bank of Cyprus has confirmed. The move is the part of the painful Cyprus rescue package.
Under the new conditions, Bank of Cyprus clients with accounts with over 100,000 euros in deposits will be offered shares instead of cash in the bank for 37.5 percent of their deposits. Those under the 100,000 mark will reportedly not be required to participate in the scheme.
Authorities had previously predicted a loss to big depositors of 30 to 40 percent. Anger is mounting in the country as Cypriots protest the dissolving of the second-largest bank – Cyprus Popular Bank, also known as Laiki – and what they are calling a theft of their assets.
Under the terms of the deal, the assets of Laiki bank will be transferred to Bank of Cyprus.
At Bank of Cyprus, about 22.5 percent of deposits over 100,000 euros will earn no interest. The rest of the account will generate interest, but will not be repaid until the bank shows a strong performance. » | Saturday, March 30, 2013
