ECONOMY

BoC depositors to lose 47.5 pct of savings over 100,000 euros

The Cypriot government said on Monday depositors at the country’s largest bank will lose 47.5 percent of their savings over the 100,000-euro insurance limit.

Losses at Bank of Cyprus were initially estimated at 37.5 percent.

Another 22.5 percent of the deposits remained tied up while experts calculated how much money the bank would need to remain solvent, said government spokesman Victoras Papadopoulos.

Depositors hit with losses will get shares in the bank.

Large depositors in Cyprus’s two biggest lenders were forced to take losses as a condition of a 23-billion-euro rescue package the country agreed on with its eurozone partners and the International Monetary Fund in March.

Restrictions on money withdrawals and transfers were imposed for all banks to head off a run.

[AP]