Please follow the link below for all recent developments and bank restrictions
http://www.mof.gov.cy/mof/mof.nsf/index_en/index_en?OpenDocument
25 March 2013
Dear Valued Clients, Colleagues & Friends,
Further to our previous communication on the Cyprus situation, we wish to inform you of the latest developments, after Eurogroup meeting held on 24th March 2013 on the Cyprus Economy.
Following lengthy and tough negotiations between the Cyprus Government and the Eurogroup, a decision was reached that will allow for the recovery of the Cyprus Economy.
The terms of a 10 billion euro bailout agreement were concluded, the details of which have not yet been officially published. However it has been made clear that the main aspect of this agreement is that all bank deposits and credit balances with Cyprus Banks up to €100,000 are considered secured and will not be affected by any of the measures to be taken.
Unfortunately, a casualty of the agreement is that Marfin Laiki Popular Bank effectively had to go into liquidation under the terms of a specific legislation that was voted by the Cyprus Parliament two days ago. This will result in losses for all unsecured creditors (with deposits and credit balances above Euro 100,000), shareholders and bond holders. The Bank of Cyprus has been rescued under the scheme, the side effect being the imposition of a one off levy on all unsecured deposits and credit balances above Euro 100,000 – the percentage of which is yet to be determined, although it is estimated it will be in the region of 30%. Please note that this one off levy will only be imposed on deposits and credit balances above Euro 100,000 with the Bank of Cyprus and not with any of the other Cyprus Banks. To the best of our understanding, bonds will be granted in exchange for the one off levy imposed on unsecured creditors.
At the same time, the whole scheme is designed to allow for the recovery and fiscal consolidation of the Cyprus banking system.
The Cyprus Central Bank is actively making all possible efforts so that the Cyprus Banks can resume work, if not tomorrow, within the next few days. To this regard, it is expected that the Cyprus Central Bank will impose temporary restrictions on banking transactions which aim to maintain and secure the financial stability of the banking system under the circumstances and which are expected to be announced at the same time with the decision for the resuming of work of the banking institutions in Cyprus.
We will be keeping you updated on all developments.
Please do not hesitate to contact us should you wish to address to us any queries or discuss with us any aspect of this matter.
20 March 2013
Dear Valued Clients, Colleagues & Friends,
Further to our previous communication on the Cyprus situation, we wish to inform you that the Bill proposing the one off levy on deposits and credit balances was not ratified by Parliament yesterday evening.
The Cyprus Government is currently actively exploring alternative options to securing funding both from sources within the country but also from Europe and beyond.
The Banks will be closed today as well. On a related note, please also bear in mind that Monday the 25th of March is a public holiday in Cyprus.
We will keep updating you on developments,
EuroAudit
19 March 2013
Dear Valued Clients, Colleagues & Friends,
You have probably been informed of the latest developments affecting the Cyprus economy. After lengthy negotiations between the Cyprus Government and the Eurogroup a political decision was imposed on Cyprus last Saturday 16.3.2013 according to which a one off levy is to be imposed on bank deposits and credit balances, at the rate of 6.75% for those between €20K – €100K and at the rate of 9.99% on those exceeding €100K. This decision is subject to approval and ratification by the Cyprus Parliament and the relevant proposed bill is expected to be deposited with the House of Representatives.
However, Saturday’s decision was followed by fierce political reactions in Cyprus and to the best of our understanding also in other European countries, which are still ongoing.
We will keep you updated.
EuroAudit