Bank of Cyprus Depositors Hand Over 47.5% in Bail In-Source

ATHENS–Large deposit holders at Bank of Cyprus PCL (BOCY.CP) will see almost half of their deposits turned into equity at the lender as part of the country’s international bailout, a senior bank official said Sunday.

After an all day meetings Saturday between President Nicos Anastasiades and representatives from the country’s creditors–its euro-zone partners and the International Monetary Fund–it was decided that 42.5% of all deposits over 100,000 euros ($132,764) will be converted into shares as part of its recapitalisation plan, the official said.

Depositors will also have an additional 5% siphoned from their bank accounts and turned into a contingent convertible bonds, also known as Cocos, at the lender, the official added. A formal announcement is expected late Sunday or Monday.

Earlier this year, Cyprus’s government agreed to a sweeping overhaul of its banking sector in exchange for a EUR10 billion bailout from its euro-zone peers and the IMF. Under the deal, Cyprus closed its second biggest lender, Cyprus Popular Bank PCL (CPB.CP), and is merging its healthy assets with Bank of Cyprus.

Full article: Bank of Cyprus Depositors Hand Over 47.5% in Bail In-Source (Wall Street Journal)

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