Cyprus has reached a last-minute bail-out deal of 10bn ($13bn) with its international lenders that will guarantee all deposits under 100,000.
Laiki Bank, the second-largest Cypriot bank by assets, will be liquidated and deposits below 100,000 will be shifted to the Bank of Cyprus to create a "good bank".
Go deeper with GlobalData
Deposits above 100,000 in both banks, which are not guaranteed under EU law, will be frozen and used to pay off Laiki’s debts and recapitalise Bank of Cyprus.
Deposits in all other Cyprus banks will be unaffected by the measure.
The Central Bank has also imposed withdrawal limits of 100 a day at ATMs to avoid a run on the country’s banks.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRelated articles:
Banks in Cyprus to remain closed until 26 March
UK bank levy will make it harder to lend to consumers: Deloitte
FIS sign seven year deal with FirstBank Puerto Rico
