Cyprus Saved! (for now)

Looks like Cyprus won’t be exiting the Euro tomorrow; the Cypriot government and EU lenders approved a deal that will wind down the second largest Cypriot bank to raise the cash required by the European lenders…

It looks like there won’t be any deposit tax (and all deposits under 100k will be protected), but uninsured deposits in the second largest bank will take a large penalty (along with senior bondholders in the bank). Looks like the deal does not need to be approved by the Cypriot parliament because the money will be raised through restructuring the bank.

More details tomorrow, for now:

http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html

http://www.nytimes.com/2013/03/25/business/global/cyprus-and-europe-officials-agree-on-outlines-of-a-bailout.html?hp

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