Today, on March 26th 2013, the chairman of the bank of Cyprus has resigned, the BBC reports. At the same time, the IMF/EU/ECB trinity of lenders seems to have compromised with the Cyprus government. It turns out that the financial support will take the form of bank restructuring. In particular, the local authorities will spend the forthcoming tranche on the restructuring of the Bank of Cyprus and Laiki.
According to Michalis Sarris, the finance minister of Cyprus , all the bank deposits over 100K euro will be charged with a one-time 40% tax.
Obviously, bankers didn’t welcome such a decision as this decision would affect the overall image of local banks. At the same time, the BoC’s stock is depreciating today amid rating cuts. In particular, Fitch Ratings has cut the credit ratings of 3 Cyprus banks.
