Adsense Search

Custom Search

28 March 2013

Cyptus Bailout Plan In Plain English

1. Laiki bondholders and equity owners will likely lose everything. Uninsured deposits will incur loses of around 40%

2. Laiki bank will be shut down.

3. Good parts of Laiki Bank will be turned over to Bank of Cyprus. Uninsured deposits in BoC will remain frozen until recapitalisation has been effected, and may be subject to liquidation.

4. The Governing Council of the European Central Bank will provide liquidity to the BoC in line with applicable rules.

5. BoC will be recapitalised by exchanging deposits for bank equity.

6. The conversion will be such that a capital ratio of  9 % is secured by the end of the programme.

7. All insured depositors in all banks will be fully protected in accordance with the relevant EU legislation.

8. The programme money (up to 10bn Euros) will not be used to recapitalise Laiki and Bank of Cyprus.