EU document says depositors in Cypriot banks may lose €8.3bn

Julian Harris
Follow Julian
PEOPLE who held large deposits in Cyprus’s two biggest banks could lose up to €8.3bn (£7.1bn) from the impending bail-in, a European Commission document has said.

Along with its international bailout providers, the Cypriot authorities decided that depositors with more than €100,000 in either Laiki Bank or Bank of Cyprus will lose some of their money to contribute to the recapitalisation of the banks.

Shareholders and bond holders will also bit hit.

“The bail-in of uninsured depositors of Laiki and Bank of Cyprus will provide an estimated contribution to recapitalisation of €8.3bn,” the document, dated 12 April, said.

In a footnote of the official document, it added: “This is a maximum estimate. The final amount will depend inter alia on the conversion under the debt-for-equity swap in Bank of Cyprus and the recoveries of Laiki Bank.”