Cyprus Bail-in
About Cyprus Bail-in
In March 2013, Cyprus implemented an unprecedented bail in, forcing depositors in Cypriot banks to contribute to the bank rescue. Depositors with over 100,000 euros at the Bank of Cyprus and Laiki Bank lost a significant portion of their savings. The bail in was required by the EU and IMF as a condition for a 10 billion bailout. The decision shocked depositors who assumed their money was safe. Cyprus had become an offshore banking center, particularly for Russian deposits. The bail in demonstrated that bank deposits, even insured deposits, could be at risk in extreme circumstances. The Cyprus template influenced later EU banking resolution rules.
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