NICOSIA, Cyprus (AP) — Cypriot authorities say the country's biggest bank is in good financial health after grabbing a part of depositors' savings, adding the move will help stabilize the financial sector.
The central bank said Tuesday that the Bank of Cyprus' 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 ($132,840). Depositors hit with losses will get shares in the bank.
The deposit grab at Bank of Cyprus and the smaller, now defunct Laiki Bank was a key condition of a 23 billion-euro ($30.5 billion) 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.