Skip to comments.LIVE: Deal Reached On Cyprus Bailout
Posted on 03/24/2013 7:11:45 PM PDT by blam
LIVE: Deal Reached On Cyprus Bailout
March 24, 2013
The Eurogroup of euro zone finance ministers met in Brussels tonight to approve a plan to bail out the Cypriot banking system.
The new deal will see uninsured deposits at the country's two largest banks take a substantial haircut, but insured depositors those with less than 100,000 euros in their bank accounts will be spared from the one-off "tax" that was being considered just a week ago.
Reports of a deal between Cypriot and EU officials being reached prior to the Eurogroup meeting caused the euro and the Australian stock market to spike.
Now, the Eurogroup has signed off on the deal as well.
CNBC's Kelly Evans tweets that Cypriot President Nicos Anastasiades is pleased with the outcome:
Below are more details from Reuters on the plan:
It will mean that Popular Bank of Cyprus, the island's second largest bank which is also known as Laiki, will effectively be shut down.
Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus, the country's largest bank. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debts. It remains unclear how large the writedown on those funds will be.
No charges will be incurred against any Cypriot bank account with less than 100,000 euros in them, the officials said.
Because the process will be treated as a bank restructuring as opposed to a nationwide "tax" on bank deposits, it seems that the plan will not be subjected to another vote in the Cypriot parliament, which on Friday passed new laws enabling them to navigate the restructuring process more easily.
The Eurogroup press conference is now underway.
Dutch Finance Minister Jeroen Dijsselbloem,
(Excerpt) Read more at businessinsider.com ...
What a relief! /s
Ivan gets scalped.
Assuming the Russian 31 billion isn’t insured.
is that you rachel corrie?????
I know *I* have dozens of accounts to keep just under 100K in each of them for trying times such as this.
Ivan won't forget.
Next stop: USA
THe EU may be stupid and destroying European civilization, but they sure know how to cling on to power and never let go.
Wow, that’s a relief. I thought they were going to do something crooked to steal depositor’s money. Just a little ole “government managed” bankruptcy....where have I heard that term before?
Glory to the Belgian Bolshevik’s and the new revolution!
How much will prices spike now as investors take the money they have and purchase commodities to protect against seizures else where?
I’ve heard between 25 - 40 percent. There’s also a rumor that the Cypriot Parliament might not vote on it since it’s a “restructuring” and not a tax.
Whole lot of EU officials need to buy a Geiger counter.
Any bets on how long before the first killing by the Russians?A bunch of people signed their own death warrants when they stole from former KGB types.
Cypriots have a hugh sigh of relief, as their bank accounts remain intact, while the same effect is achieved in a slightly different, but less noticeable way. You know, like has been happening, and is happening right now in the US.
Jeb Bush. Ima sure it was Jeb.
Whole lot of EU officials will have to hire someone to start their car for them.
A “haircut”, really? Um no, it is confiscation. And it’s outrageous.
So it would be better if the entire country collapsed and people started slaughtering each other in the streets?