Just 6 cents on the euro for Cyprus Bank victims

Savers in the failed Cyrpus Bank, Laiki Group are to receive just 6% of their bank deposits back from the according to the Cyprus Mail.

In 2013 bank customers with deposits over 100,000 euros woke up to discover that their savings had been confiscated and used to re-finance the banks.

A €10 billion international bailout n return for Cyprus agreeing to close the country’s second-largest bank, the Cyprus Popular Bank (also known as Laiki Bank).

A one off Bank Deposit Levy was implemented to all uninsured deposits there, and possibly around 48% of uninsured deposits.

Bank customers and depositors effectively became creditors of the bank.

Kleovoulos Alexandrou, the special administrator appointed for Laiki, has said that to date approximately €220m has been raised from sales of the lender’s assets.

The total recovered amount would work out to about 6 per cent of the €4bn in uninsured deposits (over €100,000) completely wiped out in the bail-in. Insured savings were untouched and transferred to Bank of Cyprus.

New Bail In laws were passed in 2014 and agreed by G20 Nations. This means that the banks creditors will see their deposits used to refinance the banks in times of systemic failure.

How Bails will effect you https://www.huffpost.com/entry/new-g20-bailin-rules-now_b_6244394

Full story here: https://cyprus-mail.com/2019/08/12/just-6-cents-on-the-euro-for-laiki-haircut-victims/

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