ECONOMY

Bank of Cyprus deposits raid boosts finances

Cypriot authorities said on Tuesday the country’s biggest bank is in good financial health after grabbing a part of depositors’ savings, adding that the move will help stabilize the financial sector.

The central bank stated that the Bank of Cyprus’s key capital ratio – a measure of a bank’s health – stands at around 12 percent after depositors were forced to lose 47.5 percent of their savings over 100,000 euros.

Depositors hit with losses will get shares in the bank.

The deposit grab at Bank of Cyprus and the smaller, now defunct Cyprus Popular (Laiki) Bank was a key condition of a 23-billion-euro bailout Cyprus agreed on with its eurozone partners and the International Monetary Fund in March.

Capital controls were imposed on banks to head off a run.

[AP]