Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: EEGator

“I’ve heard between 25 - 40 percent.”

If that’s the case, I expect there will be many companies that can’t meet their payrolls or pay vendors. Then what? I haven’t heard whether bondholders will be getting a haircut.


28 posted on 03/24/2013 7:46:58 PM PDT by sergeantdave
[ Post Reply | Private Reply | To 13 | View Replies ]


To: sergeantdave

I’ll see if I can find out about the bondholders.


30 posted on 03/24/2013 7:49:00 PM PDT by EEGator
[ Post Reply | Private Reply | To 28 | View Replies ]

To: sergeantdave

1. Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework.

2. Laiki will be split into a good bank and a bad bank. The bad bank will be run down over time.

3. The good bank will be folded into Bank of Cyprus (BoC), using the Bank Resolution Framework,after having heard the Boards of Directors of BoC a nd Laiki. It will take 9 bn Euros of ELA with it. Only uninsured deposits in BoC will remain frozen until recapitalisation has been effected, and may subsequently be subject to appropriate conditions.

4. The Governing Council of the ECB will provide liquidity to the BoC in line with applicable rules.

5. BoC will be recapitalised through a deposit/equity conversion of uninsured deposits with fullcontribution of equity shareholders and bond holders.

6. The conversion will be such that a capital ratio of 9 % is secured by the end of the programme.

7. All insured depositors in all banks will be full y protected in accordance with the relevant EU legislation.

8. The programme money (up to 10bn Euros) will not be used to recapitalise Laiki and Bank of Cyprus.


32 posted on 03/24/2013 7:51:57 PM PDT by EEGator
[ Post Reply | Private Reply | To 28 | View Replies ]

To: blam

25-40% isn’t a restructuring, haircut, fleecing or scalping; that’s rape and pillage.


40 posted on 03/24/2013 8:08:27 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
[ Post Reply | Private Reply | To 28 | View Replies ]

To: sergeantdave
“I’ve heard between 25 - 40 percent.”

Anyone with money needs to put a good percent of their wealth into hard assets. Land (waterfront lots, farmland), gold/silver etc. REIT's are also a good place to be. You need some cash but you need to look average to almost poor. Hide your wealth. That's the great lesson here.

41 posted on 03/24/2013 8:11:24 PM PDT by Katiana Kalashnikova
[ Post Reply | Private Reply | To 28 | View Replies ]

To: sergeantdave

I also think there will still be a run on the banks for those under 100K euros.


43 posted on 03/24/2013 8:16:25 PM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
[ Post Reply | Private Reply | To 28 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson