Cyprus dodged a disorderly sovereign default and
unprecedented exit from the euro by bowing to demands from creditors to shrink
its banking system in exchange for 10 billion euros ($13 billion) of aid according to Bloomberg.
Cypriot President Nicos Anastasiades agreed to shut the
country’s second-largest bank under pressure from a German-led bloc in an
overnight negotiating melodrama that threatened to rekindle the European debt
crisis and rattle markets.
The revised accord spares bank accounts below the insured
limit of 100,000 euros. It imposes losses that two EU officials said would be
no more than 40 percent on uninsured depositors at Bank of Cyprus Plc, the
largest bank, which will take over the viable assets of Cyprus Popular Bank
Pcl, the second biggest....
No comments:
Post a Comment