Depositors of the Bank of Cyprus suffer heavy losses

Customers of the largest bank in Cyprus will lose 47.5% of their savings in excess of € 100,000 (approximately $ 132,000), said on Monday the country's government.
This news comes four months after Cyprus had agreed on a support 23 billion euros (about $ 30.5 billion) with its European partners and the International Monetary Fund (IMF) program. In exchange for a loan of 10 billion euros, deposits worth more than the insured limit of 100 000 euros to the Bank of Cyprus and Laiki Bank smallest were the target of punctures to revitalize the banking system the island.

The Cypriot authorities have also decided to impose restrictions on withdrawals and transfers of funds to all banks.

As part of the bailout of the Bank of Cyprus, the depositors will suffer losses, estimated at approximately EUR 4 billion, will receive shares of the bank.

The most affected clients are pension plans for employees of Crown corporations, followed by private investors including some of the largest are Russian.

Laiki customers, which is liquidated and is found in the Bank of Cyprus, saw away the majority of their uninsured savings. It is unlikely to get the shares of the Bank of Cyprus.