10 Billion Euro Bailout Approved for Cyprus, intended to protect small depositors

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According to reports, the 10 billion Euro worth deal is going to be inclusive of a levy on funds in excess of 0.1 million Euros in two of the largest banks in Cyprus. Reports also suggested that the levy on deposits in the country’s 2nd-largest bank- Laiki (Popular) Bank- could be as high as 40 percent.

So far, the deal is presumed to be good news for the small account holders of Cyprus. This is because of the fact that, all deposits worth under 0.1 million Euros are going to be secured. That being said, people having deposits more than that amount will be hit badly. The reports also suggest that, levy on deposits above 0.1 million Euro in the Bank of Cyprus is yet to be decided.

In the awake of the news of the deal, Asian financial markets surged during the early trading hours.

 

 

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