Cyprus: Latest
Developments in the Economic Situation
Eurogroup
(EU/ECB/IMF) and Cyprus have agreed on the 25th of March 2013 an
agreement with the following terms:
• the provision
of a €10bn financial assistance to the Cyprus Government;
• the
maintenance of liquidity by the European Central Bank to the Cyprus banking
system;
• the absorption
of the country’s second-largest bank (Laiki Bank) by the country’s biggest bank
(Bank of Cyprus);
• the bank
deposits of up-to €100.000 per legal entity per bank in the above two Cyprus
banks will be safeguarded in accordance with EU principles.
There will be no
impact on the other banking institutions operating in Cyprus (including
branches of foreign banks).
