‘It’s robbery!’ New Cyprus bombshell as Britons are told they may lose EVERYTHING over £85k…(Next Up, AmeriKa!!)
Bank of Cyprus will see 37.5% of deposits over £85k converted into shares
Laiki Bank customers are also reported to be facing the loss of 80%
Experts say there is a good chance that shares will be worthless
By DAN ATKINSON AND IAN GALLAGHER
31 March 2013
British expats in Cyprus face a near-total wipe-out of any deposits over £85,000 as the full nightmare of the stricken island’s EU bailout became clear yesterday.
Although it was known that the wealthiest savers would take a large hit from last week’s €10 billion (£8.5 billion) EU rescue deal, the loss is far greater than feared.
The blow will fall on customers of the country two biggest banks – Bank of Cyprus and Laiki Bank.
Bank of Cyprus savers will see 37.5 per cent of any deposits over €100,000 (£85,000) converted into shares in the bank, with a strong possibility that these will prove worthless. Another 40 per cent will be repaid only if the bank does well in future, while 22.5 per cent will go into a contingency fund that could be subject to further write-offs.
Laiki Bank customers are also reported to be facing the loss of 80 per cent of their deposits above the £85,000 limit.