Further raid on BoC possible
CyprusMail 20/05/2013
THE Bank of Cyprus, touted pillar of the economy, may yet stay afloat - but at what cost? If the lender’s consolidated balance sheet - released this week - is anything to go by, it’s likely going to take many more billions to recapitalise the bank to a degree that’s satisfactory to regulators. And given that for the moment a raid on deposits or ‘bail-in’ is virtually the bank’s only way to raise capital, big savers can expect a much larger haircut. A crew cut, more like it, say some.
It’s plausible that the haircut on uninsured deposits - so far 37.5 per cent - could shoot up to 60 per cent, speculates one leading economist.