Cypriot President Mr Anastasiades locked a deal in Brussels

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