BANK OF CYPRUS had deposits of 18,2 billion euros in the end of January 2013.
45%-50% of all BOC deposits are unisured (over 100.000 euros). 30% bank levy means 2,5-3 billion, 40% bank levy means 3,4-3,6 billion euros, plus eight (8) billion of Laiki outstanding debt that is transferred to BOC as BOC debt!!!!!! LAIKI immediate closure also means that a big percentage of its current employees and executives are going to unemployement asap.
Following the presentation by the Cyprus authorities of their policy plans, which were broadly welcomed by the Eurogroup, the following was agreed:
1. Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework.
2. Laiki will be split into a good bank and a bad bank. The bad bank will be run down over time.
3. The good bank will be folded into Bank of Cyprus (BoC), using the Bank Resolution Framework, after having heard the Boards of Directors of BoC and Laiki. It will take 9 bn Euros of ELA with it. Only uninsured deposits in BoC will remain frozen until recapitalisation has been effected, and may subsequently be subject to appropriate conditions.
4. The Governing Council of the ECB will provide liquidity to the BoC in line with applicable rules.
5. BoC will be recapitalised through a deposit/equity conversion of uninsured deposits with full contribution of equity shareholders and bond holders.
6. The conversion will be such that a capital ratio of 9 % is secured by the end of the programme.
7. All insured depositors in all banks will be fully protected in accordance with the relevant EU legislation.
8. The programme money (up to 10bn Euros) will not be used to recapitalise Laiki and Bank of Cyprus.
The Eurogroup is convinced that this solution is the best way forward for ensuring the overall viability and stability of the Cyprus financial system and its capability to finance the Cyprus economy.
Πηγή: Η ανακοίνωση του Eurogroup με τις οδυνηρές αποφάσεις για την Κύπρο [κείμενο στα ελληνικά] | iefimerida.gr http://www.iefimerida.gr/node/96568#ixzz2OX9nDVFk