Cyprus, lenders agree to aid deal; Laiki to close

A deal has been reached!

SYDNEY (MarketWatch) — Cyprus reached a deal with its European and international lenders, announced early Monday, which will free up aid for the nation’s ailing finances, but will result in the spilt-up of the nation’s second-largest bank and possibly a levy on large deposits.

The levies will take place, although not the exact plan that was proposed at first.

However, deposit holders with less than €100,0000 in their accounts would receive protection under European principles

A bit further into the article they go on about splitting Laiki (the bank) into a "good bank" which will merge with the larger Bank of Cyprus, and a "bad bank" which "would eventually be wound down".

My question is how does the splitting of a bank go? Is it assets vs debt? Or maybe even a class difference?

Here is the source. And the full text of Eurogroup statement.

Is it just me and being tired at the end of my evening here ...or does nothing say how much they ARE taking? I see where both places says 100,000 and under should be safe ...but the rest seems left to implication and the public to just hope and assume if they are above that level?

Hmmm... Odd. I would have thought they'd want to throw it all out there at once and deal with the issues it brought at the same time?

reply to post by Wrabbit2000


There are various reports of 40%, but since i could not find any "real" source to verify this i decided not to include it.

I will share them here any way:

“Efforts have culminated”, read a translation from the Greek, with EU sources subsequently stating that a preliminary agreement is in place to hit Bank of Cyprus depositors with a massive 40 per cent “haircut” on deposits of more than 100,000 euros pending endorsement by Eurogroup finance ministers

Source

There's more info in this new thread
Cyprus, Troika (ECB) Agree to Bail-in March 24, 2013

reply to post by ReleaseThePressure

Ahhh.... 40% was the number I'd heard earlier in the day myself but I see and totally agree with your logic. Since the final announcements just released didn't say it, I can see why you didn't

I'm amazed at how often folks would throw the number on there anyway as 'close enough'...

This is the beginning of the end. No matter what Cyprus does, they will be screwed; it's just a matter of sooner or later, and many countries will follow. They are stealing the peoples money and what they don't steal they put under capital controls. They will dictate how much money you can withdraw. Businesses and such are already running out of money. This will spread throughout Europe and will eventually hit the U.S.

40 percent...

Hmmm

40

Take away the zero.

It's a bird! It's a plane! It's a pink teddy bear!

4! Oh my god! 2 plus 2, OMG!

2little2late-1.newsvine.com...




How many days did it rain a few thousand years ago? Did they have pink teddy bears then?