As you may already be aware, Cyprus has reached an agreement with the EU for the restructuring of its banking system and the provision of
loan facilities which will help stabilize the Cyprus economy and lead the country back to growth.
It is no secret that uninsured depositors (amounts in excess of EUR 100,000) will lose money in the two troubled banks (Laiki and
Bank of Cyprus).
As a result of the deal, Laiki Bank will be split in two parts – The ‘Good’ Laiki which will take over secured deposits up to €100.000 and performing loans and the ‘Bad’ Laiki which will take over deposits in excess of €100.000 and the non performing loans. ‘Good’ Laiki will be absorbed by Bank of Cyprus.
As far as Bank of Cyprus is concerned, it is estimated that 30% of deposits in excess of €100.000 will be converted into shares of the bank.
All other banks are not affected. These banks (such as USB, Piraeus, Hellenic, etc) will continue normal operations as soon as the banking system is restarted. It is expected that all banks will re open on Thursday, 28th of March.
We do understand the worries of clients and, until things settle down in Cyprus, for clients wishing to open bank accounts abroad, we will try to offer immediate solutions.