NEWS

Cyprus ‘no template’ for future eurozone bailouts, says ECB’s Draghi

European central Bank President Mario Dragi said on Thursday that Cyprus’s initial decision to charge a levy on insured as well as uninsured banks depositors was a mistake.

“That was not smart, to say the least, and was quickly corrected,» he said.

Draghi also told a news conference that Cyprus’s bailout, including hitting wealthy depositors with losses, was not what would happen in further bailouts.

“Cyprus is no template,» he said.

The euro zone struck a deal last month to hand Cyprus a bailout worth 10 billion euros ($12.84 billion) but demanded

rich depositors in its banks forfeit some money despite the risk of a wider bank run.

Initially, Cyprus also sought to charge those with 100,000 euros or less even though they had a bank deposit guarantee.

[Reuters]

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.