Today’s agreement at the Eurogroup meeting ensures that Cyprus has avoided default and the associated consequences this would have had for the country. The agreement has also avoided the disorderly default of Laiki Bank.
The Bank of Cyprus, which will be restructured and fully capitalised using the relevant legislation, will acquire performing loans, other assets and the insured deposits of Laiki Bank. This will create a healthy and resilient bank able to serve the needs of its customers and, more broadly, support the Cyprus economy.
These measures will help create a strong banking sector that will contribute substantially to financial stability and hence stimulate economic growth. |
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