Cyprus 2013

About Cyprus 2013

Cyprus imposed capital controls and restructured its banking system in March 2013. The two largest Cypriot banks, Bank of Cyprus and Cyprus Popular Bank (Laiki), had lost 4.5 billion on Greek government bonds. Cyprus received a 10 billion Troika rescue package. For the first time in the eurozone, bank depositors with over 100,000 euros were bailed in, losing up to 47.5 percent of uninsured deposits. Laiki was wound down and its healthy assets transferred to Bank of Cyprus. Capital controls were imposed, including withdrawal limits and transfer restrictions. Cyprus lifted capital controls in 2015. Bank of Cyprus emerged as the dominant bank. The case was notable for the bail in of depositors, which created a new template for resolving failing banks.