Cyprus has agreed a €10bn bailout deal that will force large losses on some big deposit holders but avoids a controversial levy on all bank accounts.
The deal, agreed in the early hours of the morning, will see depositors with over €100,000 in Cyprus' two largest banks hit with hefty losses. But in a key change to a plan announced last weekend, there will be no levy on deposits under €100,000. The agreement with international lenders means the European Central Bank will continue providing an emergency lifeline to Cypriot banks - liquidity which it had threatened to pull if no deal could be found. No Parliamentary approval is required for the new deal because it centres on a restructuring of the country's two largest banks rather...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes