THE BLAZE by JONATHON M. SEIDL
Cyprus Has Been Bailed Out: Here’s What You Need to Know
Mar. 25, 2013 7:43am Jonathon M. Seidl
BRUSSELS (TheBlaze/AP) — Authorities from Cyprus and the so-called troika of international lenders – the European Commission, the European Central Bank and the International Monetary Fund – reached agreement on a bailout loan for the country of up to 10 billion euros. A look at key parts of the deal:
-The agreement doesn’t need to be voted on by the Cyprus parliament, explains Business Insider.
-Cyprus had to come up with 5.8 billion euros somehow to secure the bailout.
-Depositors in the country’s second-largest bank, Laiki, with accounts of more than 100,000 euros will lose an unspecified amount of their money. The move is expected to yield 4.2 billion euros overall – or most of the needed amount.
-Reuters describes it as a “raid” on those above-100k euro accounts:
Deposits above 100,000 euros in both banks, which are not guaranteed under EU law, will be frozen and used to resolve Laiki’s debts and recapitalize Bank of Cyprus through a deposit/equity conversion.
The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said.
-This is what depositors with more than 100k euros reportedly saw when they logged in to the UK version of the Laiki bank website (from Twitter user Tukxi Piaggio Ape):
(Twitter user Tukxi Piaggio Ape)