Top EU Official Backtracks On Future Bailout Policy

Law360, New York (March 25, 2013, 5:09 PM EDT) -- A top European official on Monday walked back earlier comments stating that the $13 billion bailout of Cyprus, which will see large depositors bear the brunt of rescuing the country's largest banks, would be the future template for supporting countries and banks struggling with debt.

After finalizing a deal to wind down one Cypriot bank and recapitalize another using uninsured deposits, Dutch Finance Minister and Eurogroup President Jeroen Dijsselbloem told the Financial Times that such a bail-in method, where creditors are hurt when a bank fails,...
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