EU finance ministers approve deal. Bloomberg says deposits above €100K at Bank of
Cyprus could incur losses up to 40% while deposits above the €100K threshold at
Cyprus Popular Bank (Laiki) may be wiped out entirely. Deal
may not need to be approved by the Cypriot parliament.
Cyprus and top EU officials strike a preliminary deal regarding the terms of a rescue package. Deposits below €100K will be transferred from Cyprus Popular Bank (the "bad bank") to the Bank of Cyprus (the "good bank"). Furthermore, deposits above €100K at Cyprus Popular will be taxed and the bank will be shut down. The Bank of Cyprus will reportedly take on all of Cyprus Popular's ELA obligations to the ECB which total ~ €9B
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