Tagshaircut

Bank of Cyprus converts portion of uninsured savings to equity

29/04/13
Bank of Cyprus said yesterday it had carried out a conversion of uninsured cash deposits in the bank into equity, one of the conditions of international lenders to offer the cash-starved island financial aid... 12 comments

Insurers downplay impact of haircut

By Elias Hazou 24/04/13
 INSURANCE companies yesterday sought to downplay the possible impact on policy holders as a result of the deposits haircut.Under a decree issued by the Central Bank, insurance companies are no longer exempt from a deposit haircut at the Bank of Cyprus (BoC) and the old Laiki.Authorities had initially excluded various entities from the write-down but were forced to rethink after it became obvious that it would increase the losses on depositors who must chip in to recapitalise stricken BoC.Several previously exempted categories will now incur a 27.5 per cent loss on their deposits over €100,000. These include charities licensed by the finance ministry, and private schools registered with the education ministry... 9 comments

‘Hair grows back, your life savings won’t’ [WITH VIDEO]

By Peter Stevenson 18/04/13
 AS THE air of discontent grows on the island more and more disgruntled Cypriots are taking to social media to voice their objections over the way the country is being governed.A Facebook group has been created called ‘EU Citizens Haircut Protest – You’re next!’ that expresses its contempt for the decision to ‘haircut’ deposits.On Tuesday April 9, a Cypriot businessman attended an event at the European Parliament entitled ‘European Year of Citizens 2013 and the Importance of Participative Democracy’ and gave a short speech which expressed the thoughts and views of many of his peers and then calmly shaved the side of his head to make a point about the Cypriot haircut (see video below). ... 4 comments

Helios orphans fall victim to haircut

By Alexia Saoulli 14/04/13
 ON AUGUST 14, 2005, 33 children were orphaned overnight, their lives irrevocably changed.These children are the living victims of the fateful Helios Airways crash that killed all 121 passengers onboard the Boeing 737 aircraft, including their parents and, in many cases, their siblings. On March 16, 2013, the majority of these same children became victims once again. This time, instead of being robbed of their parents, they stand to lose the compensation awarded to them following their parents’ death as part of the brutal haircut on bank deposits... 32 comments

Sarris: law draft was for haircut on deposit interest

By George Psyllides 13/04/13
FORMER finance minister Michalis Sarris yesterday sought to set the record straight regarding a controversial deposit haircut bill, saying it was in fact legislation to tax gains from interest.The bill however did include a condition to tax part of deposits if the capital was withdrawn before the end of the year, he told reporters.The issue came up after Attorney-general Petros Clerides revealed he received instructions from the finance ministry on the morning of March 15 to prepare a bill concerning a haircut on deposits.Late that day, the Eurogroup decided to tax depositors as part of the island’s bailout deal... 11 comments

‘Senior officials ordered early haircut law draft’

By George Psyllides 11/04/13
THE Presidential Palace insisted yesterday that President Nicos Anastasiades had not been aware of instructions to draft legislation regarding a ‘haircut’ on deposits before the decision was actually announced by the Eurogroup.In a statement yesterday, the Palace also suggested that the previous administration knew about a possible haircut, at least since November last year, pointing to a reference in the preliminary bailout deal agreed by former president Demetris Christofias.The matter came to the fore on Monday evening, after Attorney-general Petros Clerides revealed he received instructions from the finance ministry on the morning of March 15 to prepare a bill concerning a haircut on deposits... 9 comments

‘Haircut exemptions only lead to bigger cuts for others’

By George Psyllides 09/04/13
EXEMPTING additional groups from a haircut on Bank of Cyprus (BoC) deposits could mean higher losses for other depositors, Central Bank of Cyprus (CBC) Governor Panicos Demetriades warned yesterday.Uninsured deposits in BoC – over €100,000 – currently face a €37.5 per cent cut although an additional 22.5 per cent, which have been frozen, could also suffer the same fate.The raid on deposits in the island’s biggest lender was decided by the Eurogroup together with the resolution of the second-biggest, Laiki.The government has decided to exempt various entities from the scheme, such as municipalities, charities, schools, and insurance companies.Various groups have also demanded their provident funds be exempted... 8 comments

Co-op rumour spreads panic

By Stefanos Evripidou 06/04/13
 THE GOVERNMENT, Central Bank and Cooperative Movement rushed to calm fears of a new raid on bank deposits yesterday after rumours, texts and reports circulating spread panic among depositors who formed long queues mostly outside cooperative banks. Massive lines of people formed outside cooperative banks across the country seeking ways to either get their money out or divide their fixed deposit accounts into smaller ones of under €100,000 following the circulation of text messages claiming the government was about to impose a haircut on cooperative bank deposits.  Other depositors whose fixed deposit accounts had yet to mature but who also heard the rumours turned up simply to withdraw the €300 maximum amount permitted from their accounts. ... 16 comments

Fifty appeals lodged against haircut

06/04/13
THE Supreme Court yesterday cancelled two injunctions aimed at preventing bank restructuring procedures from going ahead as more than 50 appeals have been submitted against the Eurogroup decision to resolve Laiki and force losses on Bank of Cyprus (BoC) depositors.At the same time the Church of Cyprus withdrew an appeal it had filed against writing off all of its current BoC shares, after the decision was reversed by the Central Bank.The injunctions were cancelled because of possible conflict of interest.The judge who issued them, Myronas Nikolatos, had recused himself from the cases after issuing the injunctions... 5 comments

Bullied into accepting initial haircut deal

02/04/13
PRESIDENT Nicos Anastasiades said he was bullied into accepting a haircut on deposits under threat by the European Central Bank (ECB) that it would starve Cyprus’ banks of cash.In an interview with Phileleftheros published on Sunday, Anastasiades described fraught negotiations at the Eurogroup of March 15 that dragged on into the hours of the following day.Cyprus agreed on a bank levy of 6.75 per cent on insured depositors and 9.9 per cent on large depositors (over €100,000), in a bid to stave off the collapse of its two largest commercial lenders, Laiki and Bank of Cyprus... 17 comments
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