Cyprus and European Union: estimates relating to haircut on deposits “around 80% in Popular Bank and 50% in Bank of Cyprus”April 4, 2013
On 26 March 2013, the Cypriot Minister of Finance estimated, while in a TV interview, that the haircut imposed on deposits in the context of the recent EU bailout agreement will probably apply to around 80% for deposits held in the Popular Bank and around 50% for deposits held in the Bank of Cyprus.
The Finance Minister had already given estimates for a haircut around 40% earlier the same day.
Note. The rate of the haircut is connected with the amount of capital that will be necessary for the recapitalization of Popular Bank, so that this amount covers up to 9% of its own capital in total.
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