Cypriot President Mr Anastasiades locked a deal in Brussels

25/03/201325/03/2013 George Xatzis

Presdent Nicos Anasasiades talking to Angela Merkel

After several hours the president of the republic of Cyprus Mr Nicos Anastasiades close a deal with the Euroroup in Brussels around 3:00am this morning. The president announced that Cyprus got a deal that is beneficial for the Cypriot people.
The deal is concentrated on the following:

Restructuring of Bank of Cyprus and a haircut on its deposits above 100000 euro
The percentage is not yet known (floating around 30%)
The ELA debt of 9 billion euro of Laiki bank will be imposed on Bank of Cyprus
Laiki Bank will close down
Creation of “good bank” and “Bad bank”

Update – correction:

Laiki bank will follow the good-bad bank road with the bad bank closing down eventually and the good bank will be merged with the Bank of Cyprus.
The first installment from Troika will come in around 2 months.
The 10 billion euro help will not be used to recapitalize bank institutions
Bank of Cyprus will be recapitalized by a haircut on over 100000 euro deposits
The European Central bank will provide liquidity to the Bank of Cyprus according to standard procedures

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Lore Arozena says:

04/05/2014 at 00:15

Jose Maria Arozena.

Angela Bence says:

04/05/2014 at 00:15

Independence day in cyprus!!!!!!!!!!!

George Zamel says:

04/05/2014 at 00:15

terrible D(st)EAL from the helpless depositors 🙁

Med Chrisostomou says:

04/05/2014 at 00:15

My grandad has saved for my entire life to enable me to have a decent start (once I graduate before people start pulling out the ‘lazy’ card again) and all for what? For useless people to take it off of me? This is our money, we earned it, we saved it and we trusted banks with it. It’s their job to handle money and it would have been safer in my mattress! These people are paid to look after our cash and we’d have been better off giving it to a child in a sweet shop than keeping it with them. I never agreed with us joining the Euro and now all has been confirmed. I’m absolutely gutted not just for myself but for everyone that will suffer because of this!

Elena Sofocleous says:

04/05/2014 at 00:15

We save greece and we sacrifise our people so shame so pity never felt in my life, and the point is how long trust left in us that we will have to work like machines to rebuild the fallens and which bank we will trust to safe money,not only banks there will not be pension fir me anymore so i work my my soul.

Stavros Andreas Demetri says:

04/05/2014 at 00:15

sale the gas bonds re and get us out of the E.U gia onoma tou theou!

Jack M Samardzija says:

04/05/2014 at 00:15

Please do not be supprised,
when a corporation is insolvent it is liquidated, since Cyprus is not a corporation compromises had to be made, with that in mind EU had an option to turf Cyprus out of EU and risk its own demise or offer to put more money in with attached conditions.It is fair to say that EU is very familliar with the list of clients of Cyprian banks and that’s why they have imposed the penalty or haircut levy.If the money in Cyprus banks belonged to EU residence they would hardly apply the same method, whilst EU mustered enough strength this time to bail out Cyprus what are they going to do when Spain and Italy put they hand up?
This time is much closer then EU analysts are prepared to admit, as soon as German people get sick of paying for other peoples blunders they will turf out Miss Merkel out and that will be the end of EU as we know it today, Germany will pull out and impose visa’s on all EU members, well this seems rather harsh comment but commercial reality must prevail, strange enough Cyprus authorities have not arrested any bank executives who are responsible for taking the country bankrupt, needles to say nobody is to blame as long as there is EU cashcow to coff- up the losses, whipping across someonelses back never hurts, true.

10 billion will not save Cyprus it will just delay the inevertible, it is true that Cyprus has survived a lot throughout history but they were never faced with blessings of EU up to know.
Why is not Turkish part of Cyprus affected?

George Christi Hadjivarnava says:

04/05/2014 at 00:15

Update – correction:

Laiki bank will follow the good-bad bank road with the bad bank closing down eventually and the good bank will be merged with the Bank of Cyprus.
The first installment from Troika will come in around 2 months.
The 10 billion euro help will not be used to recapitalize bank institutions.
Bank of Cyprus will be recapitalized by a haircut on over 100000 euro deposits.
The European Central bank will provide liquidity to the Bank of Cyprus according to standard procedures.

Roberto Menezes Borges says:

04/05/2014 at 00:15

Total EU-Cyprus disaster…and the lost of confidence of euro-zone banks…expect massive withdraw in all banks…in all countries, pure madness!

Laura Laurita says:

04/05/2014 at 00:15

What to expect from the EU? Did you expect that they would just pump in the money just like that? And for how long time? It is clear that something has to be changed and implemented one way or another. Yes, it is sad that the bank cuts
from deposits,however otherwise banks would just collapse and then everybody would simply lose everything and that would be even worse. There will be problems with pensions in all countries not just Cyprus. In other countries the
pension age has been gradually increased. Guess why? The answer is clear. If Cypriots would have to go through serious austerity measures like reducing the useless government staff and or significantly cutting salaries that would be shocking as well. older Cypriot generation will survive no doubt, the younger spoiled and lazy brats will have to learn how to survive. It is about time.

Stavros Andreas Demetri says:

04/05/2014 at 00:15

We should be working on an E.U exit strategy not a way to stay in!

Jelena Manic says:

04/05/2014 at 00:15

You don`t want to leave EU. If you left you will be occupied by Russia and you don’t want that.I understand your disappointment but the arrival of the Russians will never be able to have your own of the state. Now the only question is who will take the oil to Germany or Russia. One thing you should know that you need a little discipline :), now all of you can begin to spit on me but it`s true. For all of us from the south is “siga, siga “.Serbia is with you!

Angela Bence says:

04/05/2014 at 00:15

Nice one EU…..you punish people who save for looking after themselves in the long run…….you punish the island of Cyprus where tourism will go down…….you place more people on the ‘dole’ to claim benefits……you open up for other people in other EU countries to move there money now so they don’t get STUNG by you…….Cyprus has a large income from tourism…we just lost it…thank you EU……EU how many human hard working people have you just KILLED…..cyprus businessman time for you now to realise lower your
Prices and bring tourism back show the EU we are made of hard stuff….sell off cyprus airways which is continually wanting bailouts…..bring the last president to answer why he did nothing to help cyprus ……..