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The Cyprus banking sector restructuring and the impact on Provident Funds - Timeline of the Cyprus Bailout

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Timeline of the Cyprus Bailout

16 March

The first round of discussion with the Eurogroup results in bailout deal with the Troika including a 6.75% levy on deposits up to €100.000 and 9.9% over €100.000.

Access the Eurogroup statement here [PDF-English]

19 March

The Parliament of Cyprus rejects the bailout deal and banks remain closed until a new bailout agreement can be reached.

22 March

Chancellor Merkel’s opposes the utilization of pension assets as part of the bail-out solution for Cyprus.

The Parliament of Cyprus adopts several laws in preparation of the revised bailout deal, including a bill regarding the restructuring of the banking sector.

Access the Bank Restructuring Law here [PDF-Greek]
Access the Order for the restructuring of the Bank of Cyprus here [PDF-Greek]
Access the Order for the liquidation of the Popular Bank of Cyprus here [PDF-Greek]

25 March

A new bailout agreement is reached with the Troika including the liquidation of Laiki and the restructuring of Bank of Cyprus.

Access the Eurogroup statement here [PDF-English]

26 March

President Anastasiades in his public address promises to make every effort to preserve provident funds in banks in Cyprus

28 March

After almost two weeks of closure, banks are reopened with very restrictive capital controls in place. The capital controls are set to be reviewed every 7 days.

Access the first order regarding capital controls here [PDF-Greek]
Access the unofficial translation by the Central Bank of Cyprus of the capital controls here [PDF-English]

12 April

The Eurogroup welcomes the staff-level agreement reached between Cyprus and the Troika for the macro-economic adjustment program. The final agreement is expected to be in place by 24 April 2013, provided national procedures are complete. The mechanism for reimbursement of any provident and retirement fund losses from the debt-to-equity swap has not been finalised or any draft officially circulated.

Access the Eurogroup statement here [PDF-English]

14 April

The capital orders continue to be revised. The eight decree has been issued.

Access the eight order regarding capital controls here [PDF-Greek]
Access the unofficial translation by the Central Bank of Cyprus of the capital controls here [PDF-English]

30 April

The Cyprus parliament approves the MOU with the Eurogroup.

8 May

Cyprus enters into final financial assistance agreement with the European Stability Mechanism.

Access the Agreement here [PDF-English]

13 May

First tranche of bailout assistance is disbursed to Cyprus.

Access the Eurogroup statement here [PDF – English]

17 May

The capital orders continue to be revised. The twelfth decree has been issued.

Access the twelfth order regarding capital controls here [PDF-Greek]

Access the unofficial translation by the Central Bank of Cyprus of the capital controls here [PDF-English]

13 Sept

Provident Funds which held deposits with ex-Laiki Bank at 26th March 2013 and have been affected by a reduction of their deposits can submit a compensation claim to the Republic of Cyprus Treasury Department, based on the relevant decision of the Ministry Council of the Republic and further to the agreed Memorandum of Understanding. Read more here.

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