ECONOMY

Bail-in will affect Cypriot insurance companies and charities, says central bank

Cypriot insurance companies and charities will be affected by a bail-in on deposits in an attempt to minimize the broader impact on savers, the island’s central bank said on Monday.

The central bank said insurance companies, charities and private educational institutions would take a 27.5 percent impairment on their savings in Bank of Cyprus.

Under a previous arrangement, they would have been excluded.

Under a deal for 10 billion euros in aid from international lenders, Cyprus is winding down its second-largest bank Popular (Laiki), while up to 60 percent of uninsured deposits exceeding 100,000 euros in Bank of Cyprus will be seized and converted to equity to bolster its capital levels. [Reuters]