March 31, 2013
Savers with the Bank of Cyprus could lose up to 60% of their savings according to officials from the central bank and the finance ministry.
The officials said on Saturday that deposits over €100,000 (£84,000) at the country’s largest bank will lose 37.5% of their value after being converted into bank shares.
If the bank were to need further capitalisation the savers could lose as much as 22.5% more, depending on an assessment by officials who will determine the exact figure needed to restore the troubled bank back to health.
Cyprus agreed Monday to make depositors contribute in order to secure a €10bn bailout from the eurozone and the International Monetary Fund.