Bank of Cyprus deposits raid boosts finances

AP News
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Posted: Jul 30, 2013 10:00 AM
Bank of Cyprus deposits raid boosts finances

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.