Cyprus sacrifices the Laiki Bank

Cyprus Adopts Bank Overhaul Plan - Parliament Passes Emergency Measures to Close Lender, but International Creditors Raise Doubts

Meanwhile, the Parliament in Nicosia passed two key bills that would allow it to close down its second largest bank, Popular Bank of Cyprus, and aggressively curtail the free flow of money on the island. The bank restructuring law would see depositors in Popular Bank, also known as Laiki Bank, to lose as much as 40% of their savings above €100,000, Cypriot and European officials said. As details of the latest plan emerged late Friday, there were signs that the country may be forced to also resolve Bank of Cyprus, its biggest lender. The government in Nicosia was fighting to avert this by proposing an even deeper levy on the lender's uninsured depositors than one demanded earlier by euro-zone partners, according officials involved in the bailout talks.
Comment: Can you imagine one's bank being closed for an entire week?! The Eurozone crisis continues.


  1. Quote from 2nd article above:

    Workers at Laiki, the nation’s second largest bank, protested the restructuring plan that would likely cost many of them their jobs.

    "The bank is finished, we'll lose our jobs, and I'm worried about my kids," said Laiki employee Nikos Tsiangos behind barricades and a cordon of police blocking the way to Parliament. "They've brought us to the brink, the Europeans wanted to destroy our economy, and they've done it."


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