EU and Cyprus agree on €10bn bailout deal | AccountingWEB

EU and Cyprus agree on €10bn bailout deal

The Cypriot government and eurozone finance ministers have agreed a €10bn (£8.5bn) bailout deal that includes a levy on deposits over €100,000.

As part of the restructuring, the country’s second largest bank, Laiki, will be wound down split into good and bad units and eventually merged with the Bank of Cyprus - following a model devised by the UK government to deal with Northern Rock.

Deposits over €100,000 will be subject to a one-off tax, the rate of which has yet to be agreed, and all deposits under that amount will be fully guaranteed.

Cypriot banks - including Laiki, which has branches across the UK - said that UK deposits will not be affected.

Last week the Cyprus government postponed a referendum on a deal that would...


» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.