Monday, March 25, 2013
BRUSSELS (AP) — Authorities from Cyprus and the so-called troika of international lenders — the European Commission, the European Central Bank and the International Monetary Fund — reached agreement on a bailout loan for the country of up to 10 billion euros. A look at key parts of the deal:
—Cyprus had to come up with 5.8 billion euros somehow to secure the bailout.
—Depositors in the country's second-largest bank, Laiki, with accounts of more than 100,000 euros will lose an unspecified amount of their money. The move is expected to yield 4.2 billion euros overall — or most of the needed amount.
—The remainder of the money will come from tax increases and privatizations.
—Cyprus had to agree to restructure its banking sector, which is unusually large for the size of its economy.
—Laiki will be dissolved at once and split into a "good bank" and a "bad bank." The "good bank" portion of Laiki will be folded into the largest bank, the Bank of Cyprus.