Cyprus Bailout: Potential Recourse For Lost Investments
April 15, 2013, 4:19 PM EDT
Law360, New York (April 15, 2013, 4:19 PM EDT) -- On April 2, 2013, the government of Cyprus agreed to the terms of a €10 billion bailout plan with the European Commission, the European Central Bank and the International Monetary Fund. The agreement involves a restructuring of two Cypriot banks, tax rises and privatizations in order to raise additional funds for the bailout.
Because the restructuring is designed to protect bank customers with deposits of €100,000 or less, the proposals include a “bail in” mechanism that will likely result in substantial losses for depositors with more...