Bank of Cyprus Depositors to Lose 47% of Account Holdings.

Depositors at the Bank of Cyprus will seen 47.5 per cent of their savings above the insured level of 100,000 euros vanish under the proposal.

The government of the tiny and troubled island nation of Cyprus has announced that depositors with accounts holding over 100,000 euros will face a staggering loss of 47% of their assets. As CBC reports:

“Losses at Bank of Cyprus were initially estimated at 37.5 per cent. Another 22.5 per cent of the deposits remained tied up while experts calculated how much money the bank would need to remain solvent. Government spokesman Victoras Papadopoulos announced the figure Monday.”

“Large depositors in Cyprus’ two biggest lenders were forced to take losses as a condition of a 23 billion-euro ($30.5 billion) rescue package the country agreed on with its eurozone partners and the International Monetary Fund in March.”

Depositors hit with losses have, in “compensation”, been given shares of equity in the bankrupt Cypriot bank, which is about as nice a gift as a jar filled with cigarette butts.

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